The natural gas market continues to trade near a 5-week high reached on Monday but has been unable to extend recent gains over the past two sessions.
The front month June 15 contract has been trading just under 2.824 weekly high resistance over the past two sessions settling yesterday at 2.776, down 4 ticks.
Today's trade following release of the weekly EIA storage report could break the market out of the recent trading range. Last week's EIA report resulted in a 5% rally higher in just one minute of trade. The market could possibly see the opposite reaction this week.
The lower-2.700 area which includes the 40 day moving average is the first area of support followed by the 10 day moving average at 2.660. A drop under both areas of support is needed to turn the trend back down.
A breakout above the 2.824 weekly high would keep near term trend bullish with the next area of resistance being 2.870-2.880.
Outside of the rally higher last week, there is still uncertainty as to whether or not the natural gas market has set a post-winter seasonal low. The next few days of trade could be important in helping to answer this question.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
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