The natural gas market pulled back from a 5-week high on Thursday following release of the weekly EIA storage report.
After failing for a third day to rally above 2.824 weekly high resistance, the June 15 contract traded down to a 2.710 low before settling the day at 2.734, losing .042 (1.5%).
Yesterday's sell off was technically important as the June contract was unable to break below 40 day moving average support at the 2.710 low. As support held, the market has since reversed back higher in today's early trade.
The June contract may be ready for a breakout above 2.824 weekly high resistance. If this occurs, it would likely indicate a post-winter seasonal low has been set in the market.
The 10 and 40 day moving averages have converged at 2.710 today and may be moving into a bullish alignment. This area is key support as a close under the 10 and 40 day averages is needed to turn the near term trend back down.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment