Natural gas prices moved higher for a second day on Wednesday as the May 15 traded near the 2.600 level for most of the session.
The May contract did pop up to a 2.622 mid-day high almost completely closing the open gap area created on Monday between 2.596-2.625. The gap was a supportive feature for the market. With it now being closed, it becomes a bearish technical signal.
The 2.533 weekly low is the first area of support followed by the 2.475 contract low. Longer term support is between 2.390-2.400 and 2.230-2.250.
2.622-2.625 is the first area of resistance today followed by 2.690-2.700 which is both last week’s high as well as the 40 day moving average.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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