The June 15 natural gas contract gained 8.1% in last week's trade after fall to a new contract low on Monday which was followed by a 4 day rally higher.
The June contract topped out at a 2.800 high on Friday settling the day at 2.776. For the week, the contract was up .208 or 8.1%.
It is still too early to tell if last week's 2.481 low was the post-winter seasonal low or if the rally was just another short-squeeze in the market. If it was a short-covering rally, the market should quickly sell back lower this week.
Last week's 2.800 high was the third point of a trend line resistance starting at a mid-February high. A breakout above 2.800 would be another indication the market has bottomed turning 2.980-3.000 into the next longer term resistance.
The 40 day moving average at 2.710 is the first area of support today followed by the 10 day average at 2.645. A close under both averages will turn the near term trend back down.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index - Bearish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment