The April 15 natural gas contract rallied up to a 2.935 high in last Wednesday’s session but gave back most of the gains by Friday’s close settling the week at 2.786. For the week, the contract was up .059 (2.1%) trading in a fairly wide .255 range.
he April contract gapped under 10 and 40 day moving average support in the overnight session which turns the near term trend back down. Key support is a weekly low trend line between 2.680-2.700. A drop under this support would turn 2.400-2.450 into the next longer term support.
The 10 and 40 day moving averages between 2.770-2.780 are the first upside resistance today followed by last week’s 2.935 high.
Friday’s Commitment of Trader’s report showed the fund long position in the natural gas market increasing by 17% from the previous week. The funds were long 106,762 contracts, up 15,595 as of last Tuesday’s close.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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