Natural gas prices moved back into the middle of a now 9-week sideways trading range on Monday after holding above weekly low support reached late last week.
The weekly low support at the 3.740-3.760 level has now held on four occasions including late last week. As support held, the market reversed back higher over the following two days gaining .074 on Monday to settle the day at 3.931.
A breakout from the 9-week sideways trend is needed to determine the next move for the market. A downside breakout below 3.740-3.760 support would keep the primary market trend bearish with the next support being the 3.589 contract low posted last November.
If the breakout comes to the upside above 4.000-4.101 resistance, the longer term trend will turn back higher as the winter rally takes hold.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment