natural gas

natural gas

Monday, February 29, 2016

Natural Gas Corner - Technical Update - Key Support Level Being Tested On Monday




The April 16 natural gas contract has sold down to a new contract low at 1.690 in the overnight session as the market again retests an important area of support.

This support is a spot contract low first posted last December at the 1.684 level and subsequently tested last week by the expired March 16 contract which bottomed out at a 1.682 low.

A drop under 1.682-1.684 weekly low support would keep the primary market trend down with the  next support from the monthly chart coming  in a 1.610.

Former support at 1.730-1.740 now becomes the first area of upside resistance followed by the 10 day moving average currently at 1.855.

Friday’s Commitment of Trader’s report showed the funds long 65,117 natural gas futures, up 3,422 contracts from the previous week.

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

1 comment:

  1. Sectoral oil & gas stocks will remain on investors' radar after media reports suggest that Indian oil ministry seeks cut in excise duty on petrol, diesel in the upcoming 2018-19 budget to cushion the impact of rising oil prices.
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