Today’s expiring February 15 natural gas contract gained .100 in Tuesday’s trade but couldn’t rally above 2.980-3.020 resistance topping out at a 3.005 intraday high.
With resistance holding again, the market has since tipped back lower in today’s early trade dropping the February contract back toward the lower-2.900 level.
The primary trend remains down with 2.750-2.760 being a key area of support. This support has now held the past 4 weeks. A drop under 2.750 would turn the August 2012 weekly low of 2.575 into the next downside support area.
A breakout above 2.980-3.020 resistance would turn the near term trend back up with the next areas of resistance being 3.180-3.210 followed by the 40 day moving average at 3.270. As long as the market trades below the 40 day moving average, the trend will remain down.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment