natural gas

natural gas

Tuesday, June 28, 2016

Natural Gas Corner - Technical Update - Bullish Breakout To New 2016 High




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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