natural gas

natural gas

Thursday, July 21, 2016

Natural Gas Corner - Technical Update - Key Technical Test For The Market Today




The August 16 natural gas contract reached an important area of support on Wednesday, a support level which has not been tested since the latest leg higher began in late-May.

This support is the 40 day moving average which was reached on Wednesday at the 2.455 level and has been broken on Thursday as the August contract has bottomed out at a 2.625 low.

The overnight low is technically important is it represents the 38% Fibonacci retracement support of the March  to July uptrend at the 2.415 level.  If this support fails to hold, the longer term trend will turn back down with the 50% retracement support at 2.500 then becoming the next downside objective.

The August contract has since rallied back higher today toward unchanged from the overnight low and could be ready to continue higher.  A close back above the 40 day moving average at 2.660 could reignite bullish momentum but the short and long term trend following indexes are now both in a bearish alignment favoring lower prices.

Bottom line – A key technical test for the natural gas market today.

Technical Indicators:  Moving Average Alignment – Neutral-Bullish
                                         Long Term Trend Following index – Bearish
                                         Short Term Trend Following Index - Bearish

1 comment:

  1. ENERGY :

    Crude Oil April and Brent Oil May series are marginally up at $ 52.68 and $ 55.14 a barrel, respectively.
    Natural Gas April expiry has declined 0.3 percent at $ 2.805.capitalstars

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