The near term trend for the natural gas market may be ready to turn back higher following a successful hold above a key level of support by the June 16 contract.
This support at the lower-2.000 level held during Monday’s
sell off with the June contract bottoming out at a 2.026 low. With
support holding, the market stabilized on Tuesday as the June contract
gained .044 to settle at 2.086 while also posting a potentially bullish inside
range reversal bar.
This reversal has been confirmed with higher trade today turning the 10 day moving average at 2.150 into the next upside resistance. If 10 day moving average resistance is broken, the 2.304 high set two weeks ago will become the next longer term resistance.
The 2.026 weekly low remains primary support as a drop back
under this support will turn the near term trend back down with 1.940-1.970
being the next downside support levels followed by the 1.844 contract low.
Bottom line – With support holding, the market remains in a
sideways to higher uptrend.
Technical Indicators: Moving Average Alignment –
Neutral
Long Term RMI Trend Following Index –
BullishShort Term RMI Trend Following Index - Bearish
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