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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