The new front month June 15 natural gas contract’s late-day recovery on Monday was followed by continued buying in yesterday’s trade as it gained .023 to settle at 2.537.
Recent strength comes after a gap lower open on Monday during which the June contract fell to a new contract low at 2.481. The gap between 2.531-2.555 created on Monday has now been closed in the overnight session turning the 10 day moving average at 2.600 into the next upside resistance.
Once near term strength ends, a retest of Monday’s 2.481 low is expected. If broken, the 2015 spot contract low of 2.443 will become the next downside support followed by 2.390-2.400. Longer term support from the weekly chart is at 2.230.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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