Natural Gas Corner - Technical Update - A Bullish Surprise Today?

The natural gas market has stabilized over the past two sessions after losing 18% over the previous six sessions.

The market may be ready to turn back higher near term after finding buying support in the 2.044-2.100 area. 

The 40 day moving average which has been primary resistance the past two days is resistance again today at 2.180 followed by the 10 day average at 2.240.  A breakout above both averages will turn the near term trend back up with following resistance at 2.370-2.380 and the 2.495 high set in early-January.

A drop under the 2.044 weekly low will keep the bearish downtrend intact with 1.980-2.000 being the next downside support.  If 1.980 support is broken, the 1.802 contract low will become the next longer term support.

Bottom Line – A short-squeeze may be on the way today.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish

                                         Long Term RMI Trend Following Index – Bullish
                                         Short Term RMI Trend Following Index - Bearish