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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