natural gas

natural gas

Tuesday, June 21, 2016

Natural Gas Corner - Technical Update - New 8-Month High Set On Monday




The July 16 natural gas contract rallied sharply higher on Monday to begin the new week of trade and was well bid  throughout the session. 

The contract rallied up to a 2.759 high, the highest price level for the contract since last October, before closing the day at 2.747, up .124 or 4.7%.

The trend remains up with yesterday’s 2.759 high being the first area of resistance followed by 2.830 and 2.860.  Longer term resistance from the weekly chart are highs from last summer between 2.950-3.050.

Former daily high resistance at 2.635 now becomes the first area of support followed by the 10 day moving average currently at 2.610.  The 10 day moving average held as support last Thursday and Friday which brought in Monday’s buying interest.  A close back under the 10 day average could indicate a near term top has been set.

Bottom line – How high will they take it?

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


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