natural gas

natural gas

Thursday, February 18, 2016

Natural Gas Corner - Technical Update - Bears Remain In Control




Natural gas prices closed higher on Wednesday as short covering ahead of today’s EIA storage report ended five days of consecutively lower closes.     

A potentially bullish inside range bar (harami candlestick) was posted on Wednesday but has not been confirmed with higher trade this morning.

The primary trend remains down with the 1.879 contract low set on Tuesday being the first area of support.  Longer term support from the weekly chart is at 1.780-1.790 and the 1.684 spot contract low set in mid-December.

The 1.963 weekly high is the first area of resistance followed by the 10 day moving average currently at 2.000.  Longer term resistance is the 40 day moving average currently at 2.160.

Bottom line – Bears remain in control heading into today’s trade.

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

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