The August 15 natural gas contract rallied higher for
a fourth in early trade on Tuesday topping out at a 2.934 early morning high.
Late day profit taking dropped the contract back to a lower
close on the day settling at 2.840, down .024.
Although yesterday’s session ended with a loss, the August
contract held above trend line and 40 day moving average support broken as
resistance on Monday at the 2.820-2.830 level which keeps the near term
trend bullish.
Tuesday’s 2.934 high is the first area of resistance today
followed by the mid-June 2.977 high. Longer term resistance is the 200
day moving average currently at 3.120.
2.820-2.830 remains primary support today with a drop back
under this level followed by the 10 day moving average currently at 2.785
needed to turn the near term trend back down.
If this occurs, the 2.644 low set last Thursday will become
the next downside support followed by weekly lows at 2.569 and 2.588. A
close under weekly low support would be a very bearish technical signal for the
market.
Technical Indicators: Moving Average Alignment –
Neutral
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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