The natural gas market was hammered on Monday as the spot
June 16 contract reversed all of last Friday’s gains plus some to settle at
2.042, down .136 or 6.2%.
The June contract has traded down to key support at the lower-2.000
level which held during Monday’s session and in today’s early trade.
If lower-2.000 support continues to hold, the 40 day moving
average broken as support on Monday will become the first area of
resistance today at 2.075 followed by the 10 day average at 2.150. Longer
term resistance is the 2.304 high set last week.
If lower-2.000 support is broken, the 1.948 and 1.972 lows
set during March and April will become the next downside support followed
by the 1.844 contract low.
Bottom line – The 8-week sideways to higher uptrend may not
yet be over if lower-2.000 support can hold.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term RMI Trend Following Index – BullishShort Term RMI Trend Following Index - Bearish
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