natural gas

natural gas

Tuesday, May 3, 2016

Natural Gas Corner - Technical Update - Key Support Level Holds On Monday



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 – Bullish
                                         Short Term RMI Trend Following Index - Bearish

 

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