natural gas

natural gas

Wednesday, January 13, 2016

Natural Gas Corner - Technical Update - Key Support Level Holds On Tuesday




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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