The February 16 natural gas
contract traded on both sides of unchanged on Monday but ended the day nearly
flat settling at 2.334, down 3 ticks.
The trend turned higher last
week with the breakout above 10 and 40 day moving average resistance. The
40 day average at 2.250 today held near yesterday’s intraday low and is the
first area of support today followed by the 10 day moving average
currently at 2.180. A close under both averages will turn the near
term trend back down.
Last week’s 2.386 high remains
primary resistance. A breakout above last week’s high would turn
2.570-2.600 into the next longer term upside resistance.
The holiday-delayed Commitment
of Trader’s report released on Monday showed funds long 40,432 natural gas
futures contracts, down 2,946 from the previous week.
Technical Indicators:
Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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