The August 15 natural gas contract traded as low as 2.785 in the early morning session on Monday but moved back higher into the session’s close settling back over key support at the lower-2.800 level.
As support held, buyers have come back in on Tuesday
rallying the contract higher from Monday’s 2.823 daily close. The near
term trend for the market is higher but the longer term trend remains sideways
to down.
2.880-2.900 is the first area of resistance today followed
by last week’s 2.934 high. Longer term resistance levels are the
2.977 June high and the 200 day moving average currently at 3.100.
A close under 10 and 40 day moving average support at
2.795-2.820 today will turn the near term trend back down with 2.644 being the
next area of support. Longer term support levels are the
2.569-2.588 weekly lows. A drop 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 – BearishShort Term Trend Following Index - Bullish
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