The May 15 natural gas contract has broken out above 2.550-2.560 resistance in the overnight session which could bring in further short-cover buying into the market.
After setting a new 2015 spot and contract low at 2.475 on Monday, the May contract has been trending back higher in retracement of last week’s 8% losses.
The primary market trend remains down with further selling expected once a top forms on this current bounce.
The next upside resistance is the 10 day moving average at 2.590 extending up to 2.610. Longer term resistance is the 40 day moving average currently at 2.750.
The 2.475 contract low is the first area of support followed by 2.390-2.400. Longer term support is at the lower-2.300 level.
Current weakness should be the final drop lower before a seasonal and possible long term low forms in the market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment