Natural gas prices traded on both sides of unchanged on
Wednesday but finished the day nearly where they began as the spot August 16
contract settled at 2.737, up 3 ticks.
The 10 day moving average held as daily high resistance on
Wednesday’s early morning rally attempt as the August contract topped out at a
2.799 daily high.
Six consecutive daily closes under the 10 day average keeps
the near term trend sideways to lower with the 2.687 weekly low being the first
area of support followed by the 40 day moving average currently at 2.605.
Longer term support is the 200 day moving average currently at 2.450.
The 10 day moving average at 2.800 today remains primary
resistance as a close back over this level will turn the near term trend back
higher. Following resistance above the 10 day average is last week’s
2.871 high followed by the 2.998 high set in early-July.
Bottom line – A breakout from the six day sideways range
likely following today’s EIA weekly storage report.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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