natural gas

natural gas

Thursday, January 14, 2016

Natural Gas Corner - Technical Update - Key Support Area Being Tested In Today's Early Trade




Natural gas prices held firm on Wednesday following a two day sell off which erased nearly 9% from the spot February 16 contract.  For yesterday’s session, the February contract was up .012 settling at 2.269.

The 40 day moving average which has held as support the past 2 sessions is key support again today at the 2.215 level.  A close under the 40 day average will turn the primary trend back  lower with following support at 2.180-2.190 and 2.120-2.130.

The 10 day moving average which held as resistance on Wednesday is the first area of resistance again today at 2.325.  Longer term resistance is at 2.380-2.390 and the 2.495 high set last week.

Bottom Line – Momentum is about to swing back toward the bears if 40 day moving average support is broken.

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


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