natural gas

natural gas

Friday, January 8, 2016

Natural Gas Corner - Technical Update - Bears Take It On Chin On Thursday




The February 16 natural gas contract rallied sharply higher in Thursday’s session bouncing off 10 and 40 day moving average support on early weakness to close the day at 2.382, up .115 or 5%.



The 10 and 40 day moving averages are now in a bullish alignment for the first time since last July keeping the near term trend bullish.



Thursday’s 2.429 high is the first area of resistance followed by 2.500-2.520.  Longer term resistance is between 2.570-2.630.



Former daily high resistance at 2.380-2.390 is now the first area of support with longer term supports at the 10 day moving average at 2.300 followed by the 40 day average at 2.250.  A close under both averages is needed to turn the near term trend back down.



Bottom Line – Bulls remain in control.



Technical Indicators:  Moving Average Alignment – Neutral-Bullish

                                         Long Term Trend Following Index – Bullish

                                         Short Term Trend Following Index - Bullish



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