natural gas

natural gas

Wednesday, March 9, 2016

Natural Gas Corner - Market Update - Further Evidence Of A Low Being Set




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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