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
No comments:
Post a Comment