Today’s expiring July 16 natural gas contract resumed its
upward course on Monday following a three day downside correction which found
good buying interest near the 10 day moving average.
With moving average support holding last week, buyers came
back in during yesterday’s session rallying the July contract to a 2.716
daily close, up .054 (2%) on the day.
Buying has continued in today’s early session rallying the
July contract to a new 2016 spot contract high of 2.824. There should be
good selling resistance between 2.830-2.860 with longer term resistance at last
summer’s weekly highs between 2.950-3.050.
Former daily high resistance at 2.786 now becomes the first
area of support followed by the 2.721 overnight low. Longer term support
is the 10 day moving average currently at 2.690.
Bottom line – Early breakout by the July contract to new
highs could get interesting during today’s expiration.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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