Monday, June 8, 2009

Natural Gas Closes Lower, Even Lower Prices Still Possible

Natural Gas closed lower on Monday as it extended last week's decline. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If July renews last month's decline, April's low crossing at 3.395 is the next downside target. Closes above March's high crossing at 4.721 are needed to confirm that an important bottom has been posted.

First resistance is the 20 day moving average crossing at 4.021
Second resistance is last Tuesday's high crossing at 4.284

First support is last Thursday's low crossing at 3.550
Second support is the reaction low crossing at 3.500

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