natural gas

natural gas

Wednesday, April 13, 2016

Natural Gas Corner - Technical Update - Trading Back Toward Key Resistance




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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