Natural Gas Technical Update - Contract Low Support Holds On Monday - Bullish Reversal?

The March 15 natural gas contract remains in a bearish downtrend falling to a new 31-month price low in last Friday’s trade.

An early rally attempt on Monday topped out at a 2.688 intraday high, holding below 10 day moving average resistance at the 2.705 level.  The market sold back off into the close with the March contract ending the session at 2.597, up .018.

Monday’s 2.571 low held above the 2.567 contract low set last week which has led to light buying in today’s early trade.  If 2.567-2.571 support is broken, 2.490-2.500 will become the next downside support.

The 10 day moving average at 2.675 today is primary resistance followed by 2.750-2.800.  A rally above 2.800 would turn the near term trend back higher with 2.980-3.020 becoming the next area of resistance.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish