Natural Gas Corner - Technical Update - Lower-2.000 Resistance Holds On Wednesday

Natural gas prices continued higher for a second day in Wednesday’s session as the May 16 contract gained .032 (1.6%) to settle the day at 2.036.

Yesterday’s 2.051 daily high came in the resistance area at which all rally attempts since mid-March have failed.  A breakout  above last week’s 2.074 high followed closely behind by the 2015 low at 2.087 is now needed to keep the near term trend bullish.

If this breakout occurs, 2.110-2.120 and 2.200-2.210 will become the next upside resistance areas for the May contract.

The 10 and 40 day moving averages which are now in a bullish alignment are the first two areas of  support at 1.980 and 1.920, respectively.  A close under the 40 day average will turn the near term trend back down with following support at 1.892 and  1.837.

Longer term, a retest of the 1.731 contract low set in March is expected once near term strength ends.

Bottom line – Will lower-2.000 resistance hold again?

Technical Indicators:  Moving Average Alignment – Neutral-Bullish

                                         Long Term Trend Following Index – Bullish

                                         Short Term Trend Following Index - Bullish