natural gas

natural gas

Thursday, January 7, 2016

Natural Gas Corner - Technical Update - Bulls Remain In Control




The February 16 natural gas contract traded back toward the lower end of the weekly range on Wednesday losing .058 (2.5%) to settle the session at 2.267.

The February did hold above the 40 day moving average for a fourth consecutive day on Wednesday which keeps the near term market trend bullish.

The 2.386 high set last week is the first area of resistance with a breakout above this level turning 2.500-2.520 into the next upside resistance.  Longer term resistance is at 2.570-2.630.

The 10 and 40 day moving averages are on the verge of a bullish crossover and have converged at the 2.240-2.250 level.  This area is key support today as a close under both moving averages will turn the near term trend back down.

Bottom Line – A key test of underlying market strength today following this morning’s expectedly bearish  EIA weekly storage report.

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


No comments:

Post a Comment