The natural gas market rallied up to a new 7- week high in Wednesday's session as the spot June 15 contract moves toward the 3.000 level.
The trend for the natural gas market turned higher last week following the breakout by the June 15 contract above 40 day moving average resistance. The 10 and 40 day moving averages have moved into a bullish alignment along with the short and long term RMI trend following indexes turning the market trend sideways to higher.
The mid-March 2.982 high held as resistance yesterday with the June contract topping out at a 2.972 high. A breakout above these two resistance areas will turn 3.090-3.100 into the next upside objective.
The 10 day moving average which held as support on Tuesday is the first area of support today at 2.830 with longer term support at the 40 day moving average currently at 2.710.
The technical picture for the natural gas market continues to turn more bullish by the day. Funds are likely big buyers in recent trade.
Technical Indicators: Moving Average Alignment - Neutral-Bullish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
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