natural gas

natural gas

Monday, January 11, 2016

Natural Gas Corner - Technical Update - Technical Indicators Point Toward Higher Prices




The natural gas market has now closed higher 3 weeks in a row gaining another .135 or 5.7% in last week’s session with the February 16 contract settling Friday at 2.472.

A bullish crossover last week by the 10 and 40 day moving averages and bullish short and long term RMI trend following indexes point toward a continued price rally near term.  Longer term resistance is the 200 day moving average currently at 2.910.

Friday’s 2.495 high is the first area of resistance today followed by 2.570 extending up to 2.630. 

Former daily high resistance at 2.380-2.390 now becomes the first area of support today followed by the 10 day moving average currently at 2.330.  Longer term support is the 40 day average currently at 2.240.   A close back under the 40 day average will turn the trend back down.

Friday’s Commitment of Trader’s report showed the funds long 39,281 natural gas futures, down 1,151 from the previous week.  The fund long  position has roughly doubled since the market bottomed out at a new 14-year low in mid-December.

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

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