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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