An early start higher on Tuesday by the March 16 natural gas
contract was met with a wave of selling dropping the contract to a new contract
low by noonday trade.
Selling has continued in today’s early session with a new
contract low at 1.761 being set. This
low is the first area of support today followed by the December 2015 spot
contract low at 1.684. If the December
low is broken as support, a monthly chart low at 1.610 will become the next
downside objective.
If the March contract can hold above the 1.684 spot low as
support in upcoming trade, a post-winter seasonal low could be set in the
market.
Upside resistance begins at 1.848 weekly high followed by
the 10 day moving average currently at 1.890.
A close above 10 day moving average resistance could indicate the near
term trend is turning back higher.
Bottom line – Will 1.684 support hold?
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index -
Bearish
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