natural gas

natural gas

Wednesday, February 10, 2016

Natural Gas Corner - Technical Update - 10 Day Moving Average Support Broken




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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