The natural gas market was heavily sold for a second day on Tuesday as the February 16 contract fell under 10 day moving average support in early trade and was steadily sold lower into the close. For the day, the February contract lost .139 (5.8%) settling at 2.257 and is down 9.5% from last Friday’s 2.495 high.
One positive technical note for the February contract was
the40 day moving average holding as support at yesterday’s 2.241 low. This
low remains primary support today as a close under this average will turn
the trend back down.
A breakout above the 10 day moving average at 2.325
today will turn the near term trend back up with longer term
resistance at 2.420-2.430 and last week’s 2.495 high.
A drop under 2.241 support and the trend will turn back down
with 2.180-2.190 and 2.120-2.130 being the next downside support levels.
Bottom Line – 2.240 key support today and 2.325 a key
resistance level for the February contract.
Technical Indicators: Moving Average Alignment –
Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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