natural gas

natural gas

Wednesday, February 17, 2016

Natural Gas Corner - Technical Update - New 2-Month Low Set On Tuesday




Natural gas prices closed lower for a fifth consecutive day on Tuesday as the spot March 16 contract traded down to a new contract and 2-month spot contract low.

After bottoming out at a 1.879 morning low, the March contract finished the session near the lower end of the intraday range settling at 1.903, down .063 (3.2%).

The trend remains down with Tuesday’s 1.879 low being the first area of support followed by weekly chart support at 1.780-1.790 and the 1.684 mid-December low.  The mid-December low remains the initial downside objective for this current downtrend.

Former support between 1.940-1.950 now becomes the first area of upside resistance followed by the 10 day moving average currently at 2.015.  A close back above the 10 day average could be an early signal of a trend turn back higher.

Bottom line – Market near term oversold but remains in a longer term downtrend.

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

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