After falling to a new 5-week low at 2.603 in early trade on Monday, the July 15 natural gas contract finished the day at 2.649, up 7 ticks, the first higher close out of the past 6 sessions.
The market trend remains down with yesterday's 2.603 low being the first area of support followed by the late-April contract low at 2.540. Longer term support from the weekly chart is the 2.443 low also set in late-April.
Monday's 2.672 high is the first area of resistance followed by 2.700-2.720. Longer term resistance is the 40 day moving average currently at 2.780.
The market is digesting last week's losses which dropped the spot market price by 9.5%. Failure to push under the 2.540 contract low could lead to a short-covering rally back higher.
Technical Indicators: Moving Average Alignment - Neutral-Bearish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bearish
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