natural gas

natural gas

Friday, February 19, 2016

Natural Gas Corner - Technical Update - No Bottom In Sight




The March 16 natural gas contract lost .090 or 4.6% in Thursday’s session to settle at 1.852 as the market remains in a very bearish downtrend.

Selling has continued in the overnight session dropping the March contract to a new contract low at the 1.836 level.  This low is the first area of support today followed by weekly chart support at 1.780-1.790 and the 1.684 spot contract low set in December. 

Former daily low support at 1.880 extending up to 1.910 is now the first area of upside resistance followed by the 10 day moving average currently at 1.985.

Bottom line – No bottom in sight.

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

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