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
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