U.S Natural Gas faces major resistance at $3, break above confirms major trend reversal

• Natural gas recovered sharply in this month from the low of $2.5190 and jumped till $2.926.
   
• The commodity has made a fresh one-month high due to less than expected rise in natural gas inventories and hot summer.
   
• The recent weather report suggests that temperatures in the Lower  48 averaged 80 degrees for the week ending July 28, 2016—the highest so far in 2016.
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• The last week report from EIA shows that natural gas inventory increased by 11 Bcf compared with expectations of 22 Bcf .
• The prices have strengthened this week on the concern of Tropical Depression 8 is near the Outer Banks and tropical depression 9 is entering the Gulf of Mexico. Both are expected to become storms by Tuesday.
   
• Technically natural gas is facing strong resistance at $3 and any break above confirms major trend reversal, a jump till $3.32/$3.65/$4.
   
• On the lower side, major support is around $2.760 (9 –day MA) and break below targets $2.64 (55 day EMA).

It is good to buy above $3 with SL around $2.64 for the TP of $3.32/$3.65