The March 15 natural gas contract swung in a fairly wide .201 trading range on Tuesday but finished the day lower by .045 settling at 2.759.
The technical highlight of yesterday’s session was the early rally attempt which at one point had the March contract up by over .090. The contract topped out at a 2.896 daily high holding below 40 day moving average resistance which keeps the longer term market trend down.
The 10 day moving average held as support at yesterday’s 2.697 low and remains primary support today. A drop under the 10 day average would turn the near term trend back down with following support at the 2.567-2.575 weekly lows. If weekly low support is broken, the market could see an eventual price drop toward the 2.150-2.250 level.
The 40 day moving average at 2.895 today is primary resistance. A breakout above the 40 day average would be a bullish signal for the market possibly indicating a market low has been set.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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