The natural gas continues to show bullish signals the latest
being the overnight breakout above 10 and 40 day moving average resistance.
The September 15 contract has now closed higher two
consecutive days after setting a new 2 ½ week price low last Friday.
After closing Tuesday’s session at 2.812, up .064 (2.3%), the September
contract has moved higher into today’s early trade breaking out above 10
and 40 day moving average resistance between 2.820-2.825.
The next upside resistance now becomes last week’s 2.895
high followed by the mid-July 2.957 high.
Longer term, a breakout from the 3 month sideways trend is
needed to determine the next move for the market. Odds favor a downside
breakout under 2.600-2.700 support rather than a rally above 2.950-3.050
resistance.
A drop back under the lower-2.800 level would turn the near
term trend back down with 2.700-2.710 becoming the next downside support.
Technical Indicators: Moving Average Alignment -
Neutral
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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