Natural gas prices moved back higher on Wednesday as the spot January 15 contract rallied off weekly low support to close the day up 2.3%.
The January contract also posted a potentially bullish inside range reversal day which has been confirmed with higher trade in today’s early session.
Another bullish indicator for the market was the winter 15/summer 15 spread which gained nearly 40% in yesterday’s trade.
Outside of a spike higher on Monday to a 3.936 high which did not hold, the January contract for the most part has been trading in a sideways range over the past 2 weeks alternating between 3.541-3.585 weekly low support and resistance at the 3.800-3.820 level.
A breakout above 3.820 today would be another bullish signal for the market but a breakout above resistance at the lower-4.000 level is needed to turn the longer term market trend back up.
A drop under 3.541-3.585 weekly low support would keep the primary market trend bearish with following support at late-2013 weekly lows at 3.380-3.400.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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