natural gas

natural gas

Tuesday, January 12, 2016

Natural Gas Corner - Technical Update - Bulls Now On The Defensive




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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