After falling nearly 15% over the previous three trading sessions, the February 15 natural gas contract was able to regain its footing in Wednesday’s trade gaining 5%.
The February contract closed yesterday’s session at 2.974, just under the first area of resistance between 2.980-3.020.
With 2.980-3.020 resistance holding, the trend for the market remains down. The 2.750-2.783 area which has held throughout the month of January is primary support.
A drop under 2.750 would turn the 2.575 weekly low from August 2012 into the next downside support area.
A rally above the overnight 3.048 high is needed to turn the near term trend back up. If this occurs, 3.180-3.200 will become the next upside resistance followed by last week’s 3.352 high.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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