natural gas

natural gas

Friday, July 1, 2016

Natural Gas Corner - Technical Update - Buyers Reemerge On Thursday




Buyers wasted no time in bidding the August 16 natural gas contract back higher during Thursday’s session following Wednesday’s potentially bearish reversal.

The August contract was well bid throughout Thursday’s trade as it regained all the previous day’s losses plus some to close the day at 2.924, up .061 (2.1%).

The trend remains up but the market faces strong technical resistance between 2.950-3.050, the area that capped the summer 2015 rally. 

The 10 day moving average has moved up to the 2.805 level and is key support today as there has not been a single daily close under this support since the rally began in late-May.  If 10 day moving average support is broken, 2.650-2.660 will become the next longer term support followed by the 40 and 200 day moving averages.  The 10, 40 and 200 day averages turned into a bullish alignment this week.

Bottom line – Trend remains up but market facing key resistance area.

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

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