Natural gas prices rose for a 9th consecutive day on Friday as the December 14 contract rallied to a new 4-month high.
The December contract gained .539 or 14% in last week’s trade and is up .793 from the low set two weeks ago up to Friday’s 4.412 closing price.
Friday’s settle came above the 200 day moving average for the first time since early-July. The December contract also broke out above weekly chart trend line resistance at the 4.250-4.300 level which turns the longer term market trend back up.
The December contract rallied up to a 4.544 overnight high but has since moved back toward unchanged. This high is the first area of resistance today followed by 4.600 and 4.750. Longer term resistance is the 4.985-5.000 highs set in earlier in the year.
The 200 day moving average now becomes the first area of support today at 4.395 followed by the weekly chart trend line at 4.300. Longer term support is the 10 day moving average currently at 4.080.
Friday’s Commitment of Trader’s report showed a decrease in the futures only speculative long position held by the funds in natural gas. The fund long position was estimated at 141,371 contracts, down 8,333 from the previous week.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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