Natural gas futures for May ’15 delivery traded slightly higher Wednesday morning at $2.656 per mmBtu after reaching an earlier high of $2.67.
The commodity has failed to reclaim its $2.68 support level after touching $2.67 now three days in a row. The $2.68 level is expected to be strong resistance because this level previously served as a channel bottom support for natural gas for over 45 days in February and March.
“$2.68 is the key level here,” said Steve Kingston, a reporter for NatGasInvestor.com.
“Natural gas bulls need a convincing move and close over $2.68 very soon. Otherwise, it is very plausible that prices re-test the February 6 low of $2.579 because frankly there isn’t much strong support in between.”
The MACD Signal Line continues to show a wide gap from its Indicator Line, but recent price action has slowed its descent. Still, the indicator points to bearish price action ahead.
Natural gas prices will likely see a significant move in either direction after the U.S. Energy Information Administration delivers its Weekly Gas Storage Report on Thursday at 10:30am EST.
To contact the reporter for this story, please email email@example.com.