natural gas

natural gas

Monday, February 1, 2016

Natural Gas Corner - Technical Update - Market Hammered In Monday's Early Trade




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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