The April 16 natural gas contract closed higher for a third
day during Tuesday’s session gaining .022 to settle at 1.712.
The 10 day moving average held as resistance in Tuesday’s
session but has been broken today at the 1.715 level in early trade.
A close above the 10 day moving average would be further evidence
that a near term low has been posted in the market which held above a key
support level last week. This support was
an 18-year monthly low at 1.610 with last week and this weeks’ lows coming in
at 1.611.
A close above 1.715 today will turn the near term trend back
higher with 1.780-1.790 becoming the next upside resistance area.
A close back under the 10 day average will keep the trend
sideways to lower with 1.610 being primary support followed by 1.500-1.520.
Bottom line – Market showing further evidence of a low being
set.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following
Index - Bearish
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