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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