natural gas

natural gas

Thursday, February 25, 2016

Natural Gas Corner - Technical Update - Key Support Level About To Be Tested




The natural gas market remains in a very bearish downtrend as it approaches a key area of support.

This support is the 1.684 spot contract low set last December and is the next technical objective for the March 16 contract.

The March contract has traded down to yet another contract low at 1.728 which is the first area of support followed by 1.684.  If 1.684 support is broken, 1.610, a monthly low from August 1998, will become the next support level.  Longer term support is at 1.250.

If 1.684 support holds, a near and possibly long term low could be set in the market.   Former support between 1.760-1.770 now becomes the first area of upside resistance followed by the 10 day moving average currently at 1.855.  A close above the 10 day average would turn the near term trend back up.

Bottom line – Will 1.684 support be broken?

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish

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