natural gas

natural gas

Friday, April 15, 2016

Natural Gas Corner - Technical Update - Back Down To Lower End Of Summer Range


The May 16 natural gas contract turned back lower in Thursday’s session after failing to clear resistance at the lower-2.000 area reached earlier in the week.

After topping out at a 2.051 high on Wednesday, the May contract lost .066 (3.2%) in Thursday’s session closing the day at 1.970.

The market remains in a sideways trend with the 40 day moving average at 1.920 being the first area of support followed by the 1.892 weekly low set on Monday.  Longer term support levels are at 1.837 and the 1.731 contract low.

The 10 day moving average broken as support on Thursday is the first area of resistance today at 1.970 followed by the 2.051 weekly high.

The contract low is expected to be retested as support in upcoming trade.  However, the market may continue to chop in a sideways trend first before a final low is set likely later this summer.

Bottom line – Sideways trend expected to continue.

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

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