The June 15 natural gas contract broke out over 2.800 resistance in late-day trade on Monday closing higher for a 5th consecutive day.
After settling at 2.821, up .045 (1.6%) on Monday, the June contract has seen no follow-through buying support in the overnight session. The market could be ready to turn back down trapping recent longs in the market similar to the short-squeeze in last week's trade.
2.770 is the first level of support today followed by the 40 day moving average at 2.710. A drop back under the 40 day average could lead to heavy selling with the 10 day moving average at 2.660 being the next level of support. A close under the 10 day average would turn the primary trend back down.
Monday's 2.824 high is the first area of resistance today with longer term resistance at 2.980-3.000.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index - Bullish (turned higher yesterday)
Short Term Trend Following Index - Bullish
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