What more can you say the uptrend that began more than a year ago (alerted at Ecom in the fall) tested support after expiring January collapsed to the December low, and again following the March test of the calendar January low continues. Nowhere is the rally more evident than in the further differed contracts. Since that last test of support –prompt gas has traded four higher monthly lows, and now five higher monthly highs while decisively trading through resistance clearly defined by the October, November and February highs regardless of the expectations of a significant correction.
The weekly RSI , which has reliably warned of significant highs during the entire history of natural gas trading, last week recorded the second highest reading since February ’03 (when it was higher for only one week). Other technical indicators are show some potential divergences to current trend. The failure of volume to confirm higher price highs last week and the previous week and that volume during July as prompt gas rallied to close at 3.914 was significantly lower than during calendar June, which closed at 3.650. This week’s higher high was not confirmed by a higher daily or weekly RSI reading.