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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