natural gas

natural gas

Wednesday, May 11, 2016

Natural Gas Corner - Technical Update - Weekly High Resistance Holds Again




Natural gas prices regained their footing on Tuesday as the front month June 16 contract rallied off 40 day moving average support reached the previous session to end the day at 2.158, up .060 (2.9%).

The rally has stalled, at least temporarily, at weekly high resistance between 2.180-2.200 which has now held 4 times over the past 3 weeks.

A breakout above 2.200 will keep the near term trend bullish with the 2.304 April high being the next longer term resistance.

If 2.180-2.200 resistance holds, the 10 and 40 day moving averages which have converged at the 2.090-2.110 area will be primary support followed by the 2.026 low set last week.

Bottom line – No change in the sideways to higher trend for the market.

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

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