The rally in the August 16 natural gas contract may not yet
be over following Thursday test of a key support level.
This support level is the 38% Fibonacci retracement of the
March-July uptrend which is at the 2.615 level.
The August contract fell to a 2.625 early morning low on Thursday but
rallied back higher into the close once support held finishing the day at
2.692, up .034.
Daily settle back above the 40 day moving average on
Thursday has brought in renewed buying interest today as the August contract
attempts a breakout above 10 day moving average resistance at 2.720.
A close above this average today will turn the near term
trend back up with following resistance at 2.780-2.790 and the 2.871 weekly
high set two weeks ago. Longer term
resistance is the 2.998 high set in
early-July.
The 40 day moving average at 2.675 is the first area of
support today followed by the 2.615. A
close under 2.615 will turn the longer term trend back down.
Bottom line – Bulls back in today with key support holding
on Thursday.
Technical Indicators:
Moving Average Alignment – Neutral
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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ReplyDeleteCapitalStars
Thanks for the update about natural gas
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ReplyDeleteENERGY :
ReplyDeleteCrude Oil March and Brent Oil April series have gained 0.3-0.4 percent each at $ 54.51 and $ 57 per barrel, respectively.
Natural Gas April expiry has declined 0.3 percent at $ 2.692.capitalstars
This service will help you get BUY and SELL Calls on the basis of Technical analysis of the developments in Crude Oil and Natural Gas Inventory in the MCX Market.
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