Interesting chart in front-month natural gas futures
If you're in natural gas, the latest 'energy boom' might leave you feeling left behind. It's really just an oil boom with natural gas prices skidding long the same bottom as the past three years. It's never recovered from the 2015 energy bust save for a few spikes like the one in January.
Now there might be some technical light at the end of the tunnel. For the past 7 weeks, natural gas has had a seasonal tailwind and it's taken advantage with a slow, slog to the upside. It's something I highlighted at the start of April. That trend continues for a few more weeks.
At the same time, I highlighted support near $2.60 and that has proven to be solid as natty has made a series of higher lows in a slow climb to today's price of $2.87. Since the start of April, it's now up 5.2%.
However, in something as volatile as natural gas, that could be wiped out quickly.
A level to watch is the 200-day moving average, which is just above today's high.
A break here could clear the way for a larger retracement to $3.00 or $3.20.
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