Natural Gas Shows a Two-Way Trade So Far

In the aftermath of a fairly innocuous Weekly-Inventory Report, which happened to show less of a build than expected, elicited a sharp short-covering response that has propelled Natural Gas above key-micro resistance at 2.62 to a confrontation with much stiffer resistance at 2.70-2.75.

A sustained climb above 2.75 will "lock-in" a significant near-term low that has emerged from a falling-wedge formation-- more often than not a "trend-ending pattern."

If that proves accurate within the current Natural Gas set-up, then we should expect Natural Gas to continue higher to 3.00, in route to a test of its down-sloping 200-Day EMA, now at 3.29.

Inability of Natural Gas to preserve today's gains, followed by a decline that breaks 2.55, will indicate that another recovery rally has ended within the dominant downtrend.