Natural Gas Corner - Technical Update - Bulls Attempting To Regain Control

The near term trend for the February 16 natural gas contract may be on the verge of turning back higher following an overnight breakout above 40 day moving average resistance.

The 40 day average held as resistance throughout all of last week’s trade including yesterday but has since been broken in this morning’s early trade.

If the February contract can close above the 2.160 level today which is both the 10 and 40 day moving averages, the near term trend will turn back up  with 2.240-2.250 being the next upside resistance.  Longer term resistance levels are at 2.370-2.380 and the 2.495 high set nearly three weeks ago.

A drop back under 2.160 will keep the primary downtrend intact with last week’s 2.044 low being the first area of support followed by 1.980-2.000.  A close under 1.980 would turn the 1.802 contract low into the next downside objective.

Bottom Line – Bulls attempting to regain control in today’s early trade.

Technical Indicators:  Moving Average Alignment – Neutral

                                         Long Term Trend Following Index – Bullish

                                         Short Term Trend Following Index - Bearish