natural gas

natural gas

Tuesday, June 16, 2015

Natural Gas Corner - Technical Update - Market Gains 5% On Monday's Bullish Reversal


Natural gas prices reversed back higher on Monday following a two day correction gaining back  nearly all the ground lost at the end of last week’s trade.

Gains for the day amounted to .139 or 5% with the July contract finishing Monday at 2.889.

The 10 day moving average held as support on Friday as well as in yesterday’s trade which keeps the near term trend bullish.  The market has pushed up to a new 3-week high at 2.929 in  the overnight session and is the first area of resistance today followed by 2.940-2.950.   

Longer term resistance is between 3.030-3.150.  The lower-3.000 area has been solid resistance since mid-February.  A breakout above this  resistance followed by the 200 day moving average at 3.210 is needed to turn the longer term market  trend back up.

The 40 day moving average is the first area of support today at 2.805 followed by the 10 day average at 2.765. 

Technical Indicators:  Moving Average Alignment – Neutral
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bullish

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