The natural gas market declined 3 out of 4 days during last
week’s holiday-shortened week as the spot March 16 contract was heavily sold.
The March contract lost .162 or 8.2% over the course of last
week’s trade settling Friday at 1.804.
The trend remains down with 1.770-1.790 being the next
downside support followed by the 2015 spot contract low at 1.684 set in
mid-December.
If 1.684 support is broken, the 1.610 monthly low from
August 1998 will become the next downside support.
The lower-1.800 area is the first level of upside resistance
today with longer term resistance at the 10 day moving average currently at
1.955.
Bottom line – December 2015 support at 1.684 expected to be
tested in upcoming trade.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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