Natural gas prices traded down for a third day out of the past four session on Wednesday as the June 16 contract broke out to the downside from a price channel on the continuation chart that has been in place since the March 2016 low.
The daily continuation chart shown today illustrates the
upwardly sloping price channel the market has been trading in for the past 2 ½
months.
Lower channel trend line support near 2.000 was broken
yesterday by the June 16 contract and now becomes primary resistance near the
2.050 level today.
If the June contract remains below 2.050 over the next few
days of trade, the trend will turn back down with expectations for a retest of
the early-2016 lows.
A rally and close back above former trend line support near
2.050 by the June contract will likely negate yesterday’s breakout turning the
near term trend back higher.
Short Term RMI Trend Following Index - Bearish
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