Prices were well supported last week during the expiration process and with the first couple of days for the June contract as prompt. The action led to a higher weekly close for six of the last seven weeks. That just leads to confirmation of the recent bullish bias trend that has permeated the nat gas market of recent weeks with little or no fundamental reasons (at least the fundamental traders haven’t highlighted any to me recently).
Market internals show last week’s volume basically flat to the previous week and both of the last two week’s volume down from earlier in April. For an extension of the rally beyond $3.00, the bulls would like to have volume increasing as prices have gained in the last two weeks. Momentum indications (Daily and Weekly RSI being lagging indicators) are reaching the higher side of the range but are not over-bought. The weekly Bollinger band analysis also confirms that the trade is likely near the top end of the new range but prices could work another dime higher before signalling potential issues.
