natural gas

natural gas

Tuesday, April 19, 2016

Natural Gas Corner- Technical Update - Bulls Step Back Into The Market




The May 16 natural gas contract opened down to begins Monday’s session but found good buying interest soon after rallying back higher into the close to settle the day at 1.940, up .038 or 2%.

Continued buying in today’s early session has moved the May contract back into the middle of the past month’s .200 sideways trading range.  The lower-2.000 area has been formidable resistance over the past 4 weeks with the May contract topping out at a 2.074 high in early-April.  It is expected that rallies into this former resistance area will continue to be sold.

The 1.872 low set on Monday remains primary support extending down to  the 1.837 low set in March.  Longer term support is the 1.731 contract low.

The natural gas market could trend up to a new weekly high in upcoming  trade but longer term a retest of the early-March low is expected once the summer rally ends.  The seasonal price trend chart suggests the summer high could be near from a timing perspective.

Bottom line – No change in the sideways price trend.

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

No comments:

Post a Comment