natural gas

natural gas

Monday, February 22, 2016

Natural Gas Corner - Technical Update - New Contract Low Set On Monday




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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