Weekly Support Strengthens Reversal Case

The weekly chart shows this week’s range contained within last week’s range, reflecting consolidation on that timeframe. It also provides key support and resistance levels, at $2.912 and $3.18, respectively. Another important development is that this week is set to close above support represented by the 200-week moving average near $2.997 and the 20-week moving average around $2.985.

Both failed to hold as support earlier in the week, but quick reclaims within the week show that support has been retained near those moving averages. Therefore, Friday’s bullish outside day is occurring as natural gas remains above important weekly support, giving the short-term reversal signal a stronger technical foundation.