The new front month January 15 natural gas contract rallied back higher in Tuesday’s session completely closing the gap created on Monday’s lower open.
The January contract bottomed out at a 4.155 in early trade on Monday but closed nearly .150 above this low. In yesterday’s session, the contract gained another .099 settling at 4.403. The gap between 4.314-4.390 was also closed.
The January contract remains in a fairly wide and very choppy trading range between 4.040-4.150 support and the 4.633-4.689 weekly highs as resistance.
The market is slightly higher in overnight trade with the 200 day moving average at 4.450 holding as overnight resistance with longer term resistance at the weekly highs.
The 10 day moving average at 4.370 is the first area of support today with longer term support at the 40 day moving average at 4.130 which coincides with Monday’s 4.155 low.
The longer term trend for the market remains sideways to higher into the early-months of 2015. A breakout above 4.633-4.689 weekly high resistance is expected at some point in upcoming trade.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment