The March 16 natural gas contract began yesterday’s session
sharply higher gapping up in the overnight session. The rally reached at
2.171 intraday high on Monday holding under 40 day moving average resistance at
the same level.
After settling the session at 2.140, up .077 (3.7%) sellers
have come back in during today’s early session.
The gap created on Monday’s open between 2.076-2.105 is the
first area of support today with longer with longer term support at last week’s
1.954 low.
A drop under 1.910 and 1.954 weekly low support would keep
the primary market trend down with the next longer term support being the 1.684
mid-December low.
The 40 day moving average at 2.170 remains primary
resistance. A breakout above the 40 day average would turn 2.210-2.220
into the next area of resistance followed by the 2.315 high set two weeks ago.
Bottom line – Conflicting technical signals but trend at
this point remains down.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment