Natural Gas Corner - Technical Update - Key Resistance Being Tested Again Today

The February 16 natural gas contract has been trading sideways to  higher over the past two sessions but has been unable to breakout above 40 day moving average resistance.

This resistance at the 2.170 level today followed closely by the 10 day moving average at 2.120 needs to be broken in order to turn the near term trend back up.  If this occurs, 2.240-2.250 will become the next upside resistance followed by 2.380-2.390.  Longer term resistance is the 2.495 high set two weeks ago.

If moving average resistance holds, the primary trend will remain down with the 2.044 weekly low being the first area of support followed by 1.980-2.000.  If 1.980 support is broken, the 1.802 contract low set in mid-December will become the next downside objective.

Bottom Line – Key resistance area being tested.  Will it hold for a third day?

Technical Indicators:  Moving Average Alignment – Neutral-Bearish

                                         Long Term Trend Following Index – Bullish

                                         Short Term Trend Following Index - Bearish