Natural Gas Technical Daily Outlook

NATURAL GAS closed higher due to short covering on Monday and the highrange close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off July's high, the 62% retracement level of the AprilJuly rally crossing is the next downside target. Closes above the 20day moving average crossing would temper the nearterm bearish outlook.