natural gas

natural gas

Friday, March 11, 2016

Natural Gas Corner - Morning Update - Pre-Summer Rally Is On




The breakout above 10 day moving average resistance on Wednesday by the April 16 natural gas contract brought in renewed buying interest during yesterday’s session.

The April contract added .036 or 2% on Thursday settling at 1.788.  For the week, the April contract is currently up .174 or 10.5%.

Second day settle above the 10 day average keeps the near term trend bullish with 1.860-1.885 being the next upside resistance.  Longer term resistance is the 40 day moving average currently at 1.995.

Former resistance between 1.780-1.790 now becomes the first area of support today followed by the 10 day moving average currently at 1.720.  A close under the 10 day average would turn the near term trend back down with following support at the 1.611 contract low.

Bottom line – A near term bottom is in place.  The pre-summer rally is on.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish
                                           Long Term Trend Following Index – Bearish
                                           Short Term Trend Following Index - Bullish

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