The August 15 natural gas contract rallied back higher on
Wednesday from lower-2.800 support reached on Tuesday closing higher for a
third time out of the past four sessions.
The August contract finished Wednesday’s session at 2.918,
up .078 or 2.7% but could not breakout above 2.934 weekly high resistance.
The near term trend remains up with 2.934 being the first
area of resistance followed by 2.970-2.980. Longer term resistance is the
200 day moving average currently at 3.115.
2.800-2.820 remains primary support and includes a trend
line as well as the 10 and 40 day moving averages. A drop back
under 2.800-2.810 will turn the near term back down with last week’s
2.644 low being the next area of support followed by 2.569-2.588 weekly
lows. A drop under weekly low support would be a very bearish technical
indicator for the market.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long
Term Trend Following Index – BearishShort Term Trend Following Index - Bullish
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