June 15, 2009 - Natural Gas breaks 50day moving average

In the recent weeks the price of Natural Gas has been swinging up and down, testing key support and resistance lines, which is reflected in the price chart of HNU.


After Thursday's test of the 50 day moving average, I expected a key move to define the power of the bears and bulls. Today there was a great move to the upside, breaking the 50 day SMA and most importantly, closing above it, at the top price for the day.



Looking at the 30 minute chart above, we have broken the $6.80 resistance that we saw Friday (June 5th) and again last Thursday (June 11th). We are looking to support a short-term incline that has formed on the short-term.

The only thing that concerns me is the way we are moving, it seems to be in quick burst to the upside, instead of a steady climb which can be sustained far longer. I will look to the rest of the trading week to see if we can keep a steady uptrend. The next resistance level to be tested is the $8 mark.

Disclosure: I own HNU in my portfolio.