Natural gas prices rallied sharply higher on Thursday with
the December 15 contract having its single biggest daily gain since June.
For the session, the December contract was up .102 or 4.5% settling at
2.364.
The December contract also closed above 10 day moving
average resistance for the first time since early October which could be a
signal of a trend turn back higher.
Yesterday’s 2.384 high is the first area of resistance today
followed by an open gap between 2.450-2.483. Longer term resistance is
the 40 day moving average currently at 2.630.
The 10 day moving average broken as resistance on Thursday
now becomes the first area of support today at 2.310. A close back under
the 10 day average will turn the near term trend back down with following
support at the 2.188 contract low set last week.
Bottom line – It is still too early to tell but the market
may have set a multi-year price low.
Technical Indicators: Moving Average Alignment -
Neutral
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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