Natural gas futures for April ’15 delivery traded higher Thursday morning as traders and investors prepared for the U.S. Energy Administration’s Weekly Gas Storage Report.
New forecasting models showing below average temperatures in March also contributed to the uptick in prices.
As the commodity climbed higher, it looks to re-establish a key support area at $2.79. If broken, the commodity has relatively small resistance before hitting its next major level of resistance at $2.92.
A failure to break $2.79 will likely see the commodity retest its support level of $2.68. A retest of this level would also indicate weakness in the commodity as it would failed to make higher highs. As such, natural gas would likely retest its recent two-year low (made on February 6, 2015) of $2.579.
The MACD Signal Line is showing positive movement despite its recent crossing of the Signal Line. Traders and investors will look for a bullish cross of the Indicator Line in the next two trading sessions. A failure to cross will indicate downward pressure ahead.
Volume and volatility are likely to appear in the price action on Thursday as traders and investors weigh withdrawal and inventory storage results from the EIA.
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