Natural gas prices were weaker for much of Thursday’s session as the July 16 contract temporarily broke out under 10 day moving average support reaching a 2.614 morning low. But the weakness was short-lived as buyers came in late rallying the July contract back higher to a 2.698 daily close, up .022 for the day.
Daily settle back over the 10 day moving average on Thursday
is supportive but there has been no follow through buying in today’s early
trade. The July contract is currently trading lower in today’s session
with the 10 day moving average at 2.655 being the first area of support
followed by yesterday’s 2.614 low.
A daily close under the 10 day moving average today will
turn the near term trend back down with longer term support at last week’s
2.535 low and 2.495-2.500. 2.495 was a previous daily high which
when broken as resistance brought in heavy buying. A drop back under this
level could lead to liquidation selling with following support at the 200
day moving average currently at 2.415.
A breakout above this week’s 2.786 high is needed to extend
the uptrend with following resistance at 2.820-2.830.
Bottom line – Bulls still clinging to control, but that may
be changing.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term RMI Trend Following Index – BullishShort Term RMI Trend Following Index - Bullish
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