natural gas

natural gas

Friday, April 22, 2016

Natural Gas Corner - Technical Update - Breakout Needed




The May 16 natural gas contract closed nearly unchanged on Thursday holding under the 2.137 weekly high as resistance on early strength to settle the day at 2.068, down 1 tick.

The near term trend remains up with a breakout above the 2.137 weekly high needed to extend the uptrend.  The weekly high is technically important as it held under upper channel trend line resistance of a price channel that has been in place since early-March.

A breakout above 2.137 would be another bullish signal for the market turning 2.200-2.210 into the next longer term resistance.

Key support to watch is the lower channel trend line which coincides  with the 40 day moving average between 1.920-1.940.  A drop under this support will turn the longer term trend back down likely indicating a summer price high has been set.

Bottom line – 2.137 resistance needs to be broken soon to keep the 6-week uptrend intact.

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



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