natural gas

natural gas

Thursday, May 26, 2016

Natural Gas Corner - Technical Update - New 5-Week Low Set On Thursday




Today’s expiring June 16 natural gas contract has been heavily sold after breaking out for a second time under lower channel trend line support near the 2.000 level on Monday.

The June contract did close higher on Wednesday settling up .012 at 1.992 but has since sold back off in today’s session to a new 5-week low at 1.935.

The trend remains down with the 1.872 April low being the next downside support followed by the 1.766 late-March low.  Longer term support is the 18-year spot low at 1.611 which is expected to be retested as support at some point in upcoming trade.

The 10 day moving average has now crossed under the 40 day average turning the 10,40 and 200 day average alignment into a bearish positioning.  The 10 day average is the first area of resistance at 2.025 followed by the 40 day average at 2.040.

Bottom line – Bulls running for cover.

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


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