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Looking at the daily chart for the Henry Hub Natural Gas August 2020, NGQ20 contract, Chris Waterbury from Charles Schwab can see a solid rebound of the lows from late June as Natural Gas prices rallied to start the week thanks to forecast calling for warmer than expected temperatures. 

Key quotes

“The contract has seen significant buying pressure and has been able to break through the 20-Day and 50-Day Simple Moving Averages. This could be partially due to short covering but production cuts and weather patterns have helped boost the contracts price.”

“According to the CFTC Commitment of Traders report release on June 30th, managed money traders have increased their long position by +6,561 contracts and decreased their short position by -18,154 contracts. Managed money traders are still net short 6,379 contracts.”

“Trading Central’s Daily Technical Analysis found on Street Smart Central has support levels found at 1.7900 and 1.7200 with resistance levels found at 1.9900 and 2.0300.”

“The 14-Day Relative Strength Index at 64.52% shows the contract is moving into the overbought territory, which is to be expected with the buying pressure that we have seen over the last two weeks.”