Natural Gas Corner - Technical Update - Short Term Bottom Or Long Term Low?

The March 16 natural gas contract traded down to a new contract low at 1.767 level in Monday’s early trade but rallied back higher into the close setting the day at 1.821, up .017.

The primary trend remains down but the market may be ready to trend higher near term after trading down 7 out  of the last 9 sessions.  There is also a smaller chance a long term low is forming in the market but it is still too early tell.

1.880-1.890 is the next upside resistance above Monday’s 1.844 intraday high followed by the 10 day moving average currently at 1.925.  A rally above the 10 day average could indicate a larger uptrend is unfolding.

The 1.767 contract low is the first area of support today followed by the 2015 spot contract low at 1.684 set in December 2015.

Bottom line – A long term bottom or a short term low?

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bearish