Natural Gas Corner - Technical Update - Breakout Time Or Another Failed Rally?

The June 16 natural gas contract briefly sold off on Wednesday as the contract again couldn’t clear 2.180-2.200 weekly high resistance.

The sell off dropped the June contract to a 2.114 intraday low holding above 10 day moving average support at the same level.

With support holding, the trend reversed back higher by mid-morning flat-lining into the close with the June contract settling at 2.173,  up .015.

The current rally has stalled, at least temporarily, under 2.180-2.200 weekly high resistance which needs to be broken to keep the near term trend up.

A breakout above 2.200 would turn the 2.304 April high into the next longer term resistance.

If weekly high resistance holds as it has 4 times over the past month, the 10 day moving average at 2.120 today will be primary support followed by the 40 day average at 2.095.  Longer term support is the 2.026 low set last week.

Bottom line – Breakout time or another failed rally attempt?

Technical Indicators:  Moving Average Alignment – Neutral-Bullish

                                         Long Term Trend Following Index – Bullish

                                         Short Term Trend Following Index - Bullish