natural gas

natural gas

Tuesday, February 9, 2016

Natural Gas Corner - Technical Update - Key Resistance Holds On Monday




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

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