natural gas

natural gas

Tuesday, May 10, 2016

Natural Gas Corner - Technical Update - Bulls Retake Control On Tuesday




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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