After holding above weekly low support last Thursday, the October 14 natural gas contract has rallied back higher over the following three sessions.
The yesterday’s trade, the October at one point early in the day was trading over .060 lower. But late day buying rallied the contract higher into the close gaining .064 (1.6%) to settle at 3.995.
Over the past 9 weeks the natural gas market has been range bound with four sell offs toward 3.740-3.760 weekly low support all holding above support. There have also been four rallies up into 4.000-4.101 resistance, the latest being today.
The previous three rallies into this resistance area over the past 9 weeks have all reversed back lower so it will be interesting to see how this current rally attempt fares.
A breakout above 4.101 weekly high resistance will turn the longer term trend back higher. But if 4.000-4.101 resistance holds for a fourth time, the sideways range will remain intact.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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