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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