The natural gas market rallied up to a new 2016 spot high at
2.998 the last week of June, a price level last reached in May 2015.
The market lost ground during last week’s holiday-shortened
session as natural gas was heavily sold during last Tuesday’s session losing
nearly 7.5% on the day.
A potentially bearish red Harami Japanese candlestick formed
on the natural gas weekly chart which is called an inside range bar in Western-style
technical analysis.
Confirmation of last week’s reversal will now be needed
with lower trade this week. If the natural gas market closes this Friday
with a second red candlestick forming on the weekly chart, a summer high for
natural gas may be set.
If the market turns around and closes the week with a green candlestick
on Friday indicating a higher weekly close, the 2.998 June high should again be
retested as resistance and the rally may not yet be over.
A key technical test for natural gas prices and underlying strength expected this week.
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