Natural gas prices closed nearly unchanged on Monday as the
front month June 16 contract held in a fairly narrow .046 intraday range
settling the day at 2.098, down 3 ticks.
The 40 day moving average held as support on Monday
keeping the near term trend sideways to higher. Early buying today has
rallied the June contract back toward the 2.150 level as it approaches weekly
high resistance between 2.180-2.200.
A breakout above 2.200 would turn the April 2.304 high into
the next longer term resistance followed by the 200 day moving average
currently at 2.440.
The 40 day average at 2.080 is the first area of support
today followed by last week’s 2.026 low. Longer term support is between
1.940 and 1.970 followed by the 1.844 contract low set in early-March. At
some point over upcoming weeks, the March low should again be retested as
support.
Bottom line – Bulls retake control with moving average
support holding on Monday.
Technical Indicators: Moving Average Alignment –
Neutral
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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