natural gas

natural gas

Wednesday, February 24, 2016

Natural Gas Corner - Technical Update - Market Approaching Key Support Area




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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