Natural gas prices rallied up to a new 2016 high in
Tuesday’s trade as the spot July 16 contract topped out at a 2.786 morning high
before closing the session at 2.768, up .021.
The trend remains up but could see sideways to lower trade
near term following the recent run up. The 10 day moving average at 2.640
coincides with a former daily high at 2.635 and is primary support. The
10 day moving average held as support in last week’s trade resulting in the latest
run back to a new high.
If 10 day moving average support is broken, the near
term trend will turn back down with following support at 2.530-2.550 followed
by the 200 day average currently at 2.420.
A breakout above Tuesday’s 2.786 high will signal a
resumption of the uptrend with 2.820-2.830 being the next upside resistance.
Bottom line – No change in bullish uptrend, for now.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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