Natural gas prices regained their footing on Tuesday as the
spot May 16 contract rallied off 40 day moving average support to close the day
2.004, up .092 or 4.8%.
The May contract remains in a sideways to higher trading
range with the early-April high at 2.074 being the next upside resistance
followed closely behind by 2.087, a previous low from 2015. Longer term
resistance is between 2.110-2.120.
The 10 and 40 day moving averages are now in a bullish
alignment with the 10 day average at 1.970 being the first area of support
followed by the 40 day average currently at 1.920.
Longer term, a retest of the 1.731 contract low is expected
once near term strength ends.
Bottom line – Short term trend up, longer term trend back
down.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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