The July 16 natural gas contract rallied up to a new
4-month high at the 2.480 level in Monday’s trade and remained well bid into
the close ending the day at 2.466, up .068.
No follow through buying in today’s early trade could
indicate a near term pull back in the market.
Yesterday’s high at 2.480 by the July contract was
technically important as it held below the 2.495 spot contract high set in
January. A breakout above 2.495 is needed to keep the near term
trend bullish.
2.380-2.390 is the first area of support today with longer
term support at the 10 and 40 day moving averages currently at 2.300 and 2.260.
Bottom line – Key resistance at 2.495 holds on Monday.
Technical Indicators: Moving Average Alignment -
Neutral-Bullish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment