natural gas

natural gas

Wednesday, January 6, 2016

Natural Gas Corner - Technical Update - Bullish Uptrend Remains Intact




The February 16 natural gas contract has traded in sideways range over the past 3 sessions after setting a new one-month high at 2.386 last week.

The 40 day moving average continues to hold as support keeping the market in a near term bullish uptrend.  A breakout above the 2.386 high is needed to extend the uptrend with following resistance at 2.570-2.600.

The 40 day moving average at 2.245 today is the first area of support followed closely behind by the 10 day moving average at 2.225.  A close under both averages will turn the near term trend back down with following support at 2.170-2.180 and 2.100-2.110.

Bottom line – Bearish sentiment still appears extreme which likely indicates further price gains ahead. 

Technical Indicators:  Moving Average Alignment – Neutral-Bullish
                                         Long Term Trend Following Index – Bullish
                                         Short Term Trend Following Index - Bullish



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