Natural gas prices traded on both sides of unchanged on
Tuesday but rallied higher in late day trade as the spot April 16 contract
gained .032 (1.7%) to settle at 1.851.
The April contract is up .287 or 18% from the 1.611 low set
7 trading days ago up to yesterday’s 1.898 high.
Yesterday’s high is technically important as it comes just
under the top of resistance at the 1.900 area with a breakout above this level
needed to extend the uptrend. The next
area of resistance above 1.900 is the 40 day moving average currently at 1.965.
The 10 day moving average at 1.755 is primary support today
with longer term support at the 1.611 contract low.
Bottom line – While pullbacks are to be expected, the
natural gas market remains in a post-winter seasonal rally higher.
Technical Indicators:
Moving Average Alignment – Neutral-Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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