Natural gas prices surged higher for a third week in last week's trade with most of the gains coming during Thursday's session following the weekly EIA storage report.
The spot July 16 contract broke out above 200 day moving average resistance at 2.430 last Monday which brought in a wave of new technical buying later in the week. Over the 5 days of trade, the July contract gained .158 (6.6%) settling Friday's session at the 2.556 level.
Early buying today has moved the July contract up to a 2.635 overnight high tying the previous high for the contract set last January.
A breakout above 2.635 will keep the bullish uptrend intact turning 2.680-2.700 into the next upside resistance. If 2.700 resistance is broken, 2.820-2.830 will become the next resistance area.
The 10 day moving average at 2.465 is the first area of support followed by the 200 day average at 2.425. A drop back under the 200 day average could lead to liquidation selling by those who bought into last week's breakout.
Bottom line - Breakout above 200 day moving average last week keeps bullish momentum in place.
Technical Indicators: Moving Average Alignment - Neutral-Bullish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
lets go $3 gas
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