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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