After falling to a new contract low at 2.608 in Monday’s early trade, the May 15 natural gas contract clawed back by the close settling at 2.666, up .027.
The May contract looks ready to move higher to retest former triangle trend line support broken last week at the 2.720-2.730 level today. If this resistance is reached and holds, it would be a very bearish technical signal for the market.
A rally back above 2.720-2.730 followed by the 10 and 40 day moving averages at 2.750 and 2.780, respectively, would negate the bearish triangle and turn the primary trend back higher.
The next few sessions should be a key test of technical resistance in the market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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