The weekly natural gas chart shows the upward spike in the market price over the past two weeks.
After bottoming at a 3.541 low last week, the spot December 14 contract has rallied sharply higher topping out today at a 4.315 high.
The rally has lifted the market back toward a former trend line support that was broken last July.
Three rallies over the past three months have all held under this former trend line support as resistance.
The overnight rally has now for a fourth time held below resistance. Failure to close above the trend line which is currently between 4.250-4.300 could see the near term trend turn back lower.
Coincidentally, trend line resistance on the weekly chart coincides with the December 14 contract highs posted over the past month at 4.246 and 4.252. A breakout and close above these highs will turn the longer term trend back up.
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