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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