Natural gas prices reversed course back higher on Tuesday following Monday's sharp sell off as the April 16 contract gained .035 (1.9%) to settle the session at 1.868.
A potentially bullish piercing pattern candlestick formed on Tuesday and has been confirmed with higher trade today keeping the near term trend sideways to higher.
A 3-month trend line, the 40 day moving average and last week's 1.957 high all converge between 1.930-1.960 which remains "breakout" resistance for the April contract. A rally above 1.960 would be a bullish technical signal for the market turning the 2.017 low from last December into the next upside resistance.
If resistance holds, the 10 day moving average at 1.855 will become the first area of support today followed by the 1.796 weekly low set on Tuesday.
Longer term support is at 1.750, 1.690-1.700 followed by the 1.611 contract low set in early-March. A retest of the March low is expected once the current uptrend tops.
Bottom line - Will 1.930-1.960 resistance continue to hold?
Technical Indicators: Moving Average Alignment - Neutral-Bearish
Long Term Trend Following Index - Bearish
Short Term Trend Following Index - Bullish
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