natural gas

natural gas

Friday, May 13, 2016

Natural Gas Corner - Technical Update - Bears May Be Ready To Take Control




The trend for the June 16 natural gas contract may be ready to turn back lower following another failed breakout above 2.180-2.200 weekly high resistance on Thursday.

The June contract did push up to a new weekly high at 2.185 in yesterday’s trade but couldn’t breakout above 2.200 resistance pulling back into the close to settle at 2.155, down .018.

Selling has come in during today’s early trade dropping the June contract under 10 and 40 day moving average support at the 2.095-2.100 level.  This turns the 2.026 low set two weeks ago into the next longer term support.  If lower-2.000 support is broken, the trend will turn back down.

2.180-2.200 remains key resistance in today’s session with a breakout above this level needed to extend the current uptrend.

Bottom line – Bulls on the defensive today with 2.180-2.200 weekly high resistance holding again on Thursday.

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

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