The March 16 natural gas contract broke out to a new 2-week
high to end last week’s trade finishing Friday at 2.298. For the week,
the March contract was up .157 or 7.3%.
Last week’s buying has been met with heavy selling to begin
this week’s trade as the March contract is currently down .119 or just over 5%
erasing much of last week’s gains.
The 10 and 40 day moving averages between 2.165-2.185 are
the first areas of support today followed by 2.080-2.085 weekly low
support. Longer term support is at 1.980-2.000 followed by the 1.910
contract low.
Bottom line – Early selling today may be a warning the trend
is about to turn back.
Funds have added to their existing long positions in the
natural gas market for a second week in a row. The fund long position
(futures only) increased by 8,766 contract to 74,155 contracts from the
previous week.
Technical Indicators: Moving Average Alignment –
Neutral
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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