natural gas

natural gas

Tuesday, July 14, 2015

Natural Gas Technical Update - Bullish Breakout On Monday - Bull Trap?


The near term trend for the August 15 natural gas contract turned higher on Monday following a breakout and close above both trend line as well as 40 day moving average resistance at the lower-2.800 level.

The August contract has continued higher in the overnight session currently up over .030 from yesterday’s 2.864 daily settle.  With 2.885 resistance broken, 2.940-2.950 now becomes the next upside resistance followed by 2.970-2.980.  Longer term resistance is the 200 day moving average currently at 3.120. 

Former resistance between 2.815-2.830 now becomes the first area of support today followed by the 10 day moving average at 2.785.  A drop back under these two support levels would turn the near term trend back down with last week’s 2.644 low being the next area of support followed by the 2.569-2.588 weekly lows.

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

 

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