natural gas

natural gas

Friday, June 17, 2016

Natural Gas Corner - Technical Update - New 2016 Contract High Set On Thursday




The July 16 natural gas contract pushed up to a new 2016 contract high on Thursday at the 2.639 level exceeding the previous high set last week by 4 ticks.

However, no follow through buying  materialized on the breakout attempt as the contract instead slumped lower into the close settling the day at 2.580, down .015.

The 10 day moving average at 2.550 today held as support in yesterday’s session as well as in today’s early trade.  A close under this average could indicate a near term top has been set in the market with following support at 2.490-2.500.  A drop under 2.490-2.500 could initiate further liquidation selling as this was a previous “breakout” resistance area.

Longer term support levels are the 200 day moving average at 2.420 and the 40 day average at 2.330.

A breakout above Thursday’ 2.639 high is needed to keep the primary trend bullish.  If this occurs, 2.680-2.690 will become the next upside resistance.

Bottom line – Key test of 10 day moving average support today.

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

No comments:

Post a Comment