Natural gas prices traded generally weaker throughout all of
Tuesday’s session but bounced back toward the close with the March 16 contract
ending the session at 2.098, down .042 (2%).
A rally higher on Monday which stalled under 40 day moving
average resistance kept the longer term market trend sideways to
lower. The overnight drop under 10 day moving average support turns the
near term trend back down with last week’s 1.954 low being the next
longer term support followed by the 1.910 mid-December contract low.
If 1.910-1.954 weekly low support is broken, it would be a
very bearish technical signal for the market with 1.780-1.790 and the 1.684
mid-December spot contract low being the next downside support levels.
The 10 day moving average is the first area of resistance
today at 2.100 followed by the 40 day average at 2.165.
Bottom line – Bearish downtrend likely far from over.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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