Natural Gas Corner - Technical Update - Summer Downtrend Progresses

The new front month July 16 natural gas contract begins today’s trade nearly .200 above the price that the June 16 contract expired at in Thursday’s session.

This gap will likely be quickly closed with lower trade ahead by the July contract which settled on Thursday at the 2.151 level.

The first level of support is at 2.080 followed by 2.050-2.060.  Longer term support is the early-March contract low at 1.939 which is expected to be tested and broken as the seasonal downtrend progresses.

The 10, 40 and 200 day moving averages are now in a bearish alignment along with the short and long term RMI indexes.  The 10 day average at 2.170 is the first area of resistance followed by the 40 day average at 2.220.

Bottom line – Bearish momentum increasing.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bearish