An early drop lower under key support on Thursday by the April 15 natural gas contract at the mid-3.800 level was a harbinger than it might be a big down day for the market.
The support broken was the 10 and 40 day moving averages as well as a trend line on the intraday chart beginning at the 2.567 February low which had all converged between 2.840-2.850.
The market remained weak ahead of the weekly storage number but selling increased soon after release of the report. The April contract bottomed out at a 2.684 daily low settling at 2.697, down .165 or 5.7%.
The April contract has now lost .348 or 11.4% from Monday’s failed breakout over lower-3.000 resistance down to Thursday’s intraday low.
2.680-2.690 is the first area of support today followed by 2.567-2.575 weekly low support. A close under weekly support would be another bearish technical signal for the market.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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