Natural Gas Corner - Technical Update - Lower-2.700 Support Holds For A Second Time This Week

Natural gas prices recovered from steep early losses on Thursday as the September 15 contract for a second time this week held above support at the lower-2.700 level.

The September contract was down just over 2.5% in yesterday’s early trade but rallied back higher from a 2.726 morning low to close the day up .015 settling at 2.813.

With lower-2.700 support holding, the September contract has moved back toward the middle of the June/July trading range with support between 2.600-2.700 and resistance at the 2.957-2.988 weekly highs.

A breakout from this sideways range is expected over the next few weeks of trade.  Yesterday’s early weakness appeared like the market was ready for a downside breakout but selling dried out above 2.706 weekly low support.

The lower-2.800 area is the first area of resistance followed by the 2.863 weekly high set on Wednesday. 

Trade could be subdued today heading into the weekend.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bullish