Natural Gas Technical Update - Near Term Trend Remains Up

The September 14 natural gas contract on Monday briefly broke out above the 4.000 level in early trade.   But by mid-morning it was trading down to a 3.922 low.

Late day buying moved the contract up to a positive close on the day settling at 3.965, up 3 ticks.

The near term trend remains up as the September contract approaches a strong resistance area between 4.050-4.100.  This resistance represents former daily lows from mid-July as well as a weekly chart trend line broken as support in early-June.

A breakout above 4.050-4.100 is now needed to turn the longer term trend back higher.

Yesterday’s 3.922 low followed closely behind by the 10 day moving average at 3.890 remains primary support.   A close below the 10 day average would turn the near term trend back down with following support at 3.820 and the 3.725 low posted 2 weeks ago.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish

                                       Long Term Trend Following Index – Bearish
                                       Short Term Trend Following Index - Bullish