natural gas

natural gas

Thursday, April 21, 2016

Natural Gas Corner - Technical Update - Key Resistance Level Holds On Wednesday




Early buying on Wednesday lifted the May 16 natural gas contract to a new 2-month high at the 2.137 level.  But buying support began to fade by mid-morning as sellers came back in dropped the contract to a 2.069 daily close, down .019 for the session.

Yesterday’s 2.137 was technically important as it held under upper channel trend line resistance that has been in place since early-March.  A breakout above yesterday’s high is now needed to keep the near term trend bullish.  If accomplished, 2.200-2.210 will become the next longer term resistance.

There is a chance yesterday’s high will be a near term and possibly longer term high for summer prices.  A drop under lower channel trend line and 40 day moving average supports currently between 1.920-1.940 is now needed to turn the longer term trend back down.

Bottom line – Is a summer top in place?

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

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