natural gas

natural gas

Tuesday, February 2, 2016

Natural Gas Corner - Technical Update - Collapse In Progress




Natural gas prices have cratered for a second day in a row in today’s early session as the March 16 contract falls back toward the 2.000 level.

Overnight selling which has dropped the March contract lower by 5.6% in today’s trade follows a strong selloff on Monday during which the contract lost .146 or 6.3% settling at 2.152.

2.080 weekly low support has been broken turning  1.980-2.000  into the next downside support.  If 1.980 support is broken, the 1.910 mid-December contract low will become the next downside support.

The 10 and 40 day moving averages which are now in a bearish alignment along with the 200 day moving average will remain primary resistance in upcoming trade.  The 10 day average is the first area of resistance at 2.150 followed by the 40 day average at 2.180.

Bottom Line – A retest of mid-December contract low support upcoming.

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

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