A rally on Monday during which the December 14 natural gas contract gained nearly 8% was followed yesterday by a pullback in the market.
The December contract was trading almost .200 lower in Tuesday’s trade but was able to rally back into the close settling at 4.244, down .096.
The primary trend remains sideways to higher with last week’s sell off being seen as a downside correction within a greater uptrend.
Buyers have come back in overnight rallying the market sharply higher in today’s early trade.
The 200 day moving average at 4.400 has been broken as resistance which turns the 4.544 high set two weeks ago into the next upside resistance.
Bottom line - The market is attempting another bullish breakout. The previous attempt in early-November failed. It will be interesting to see if this current breakout can hold up.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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