Natural gas prices on Monday pulled back from the 7-week
high reached last Friday as the spot February 16 contract lost .076 (3%) to
settle at 2.396.
10 day moving average support at 2.340 has been broken in
today’s early trade turning the 40 day moving average currently at 2.235 into
the next downside support. If 40 day moving average support fails to
hold, the trend will turn back down.
Former support between 2.380-2.390 now becomes the first
area of resistance followed by the 2.495 high set last week. Longer term
resistance is between 2.570-2.630.
Bottom Line – Bulls face their first key technical test of
underlying strength following a 3 week rally higher.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short
Term Trend Following Index - Bullish
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