Natural gas price rocketed higher on Tuesday as the spot July 16 contract broke out above 40 day moving average resistance in early trade which brought in both short-covering and new fund buying.
Gains for the session totaled .119 or 5.5% with the July
contract settling the day at 2.288.
2.320-2.330 resistance has been broken on Wednesday turning
the 200 day moving average at 2.445 into the next upside resistance. This
resistance area is also near the level the July contract last topped in April
at a 2.427 high.
2.320-2.330 is the first area of support today with longer
term support at the 40 day moving average currently at 2.230.
Bottom line – Near term trend higher, longer term trend
sideways to lower.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index – Bullish (turned higher yesterday)
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