natural gas

natural gas

Thursday, March 10, 2016

Natural Gas Corner - Morning Update - Bulls Taking Over Control Of The Market




Today will be another important test for the natural gas market following yesterday’s breakout by the April 16 contract above 10 day moving average resistance.

The spot April 16 natural gas contract has not closed above the 10 day average since January 29th when the breakout failed and the market quickly sold off back lower.

With the April contract again closing above this average on Wednesday settling at 1.752, it will be interesting to see if the market can extend recent gains.

The near term trend is now bullish with yesterday’s 1.784 high extending up to 1.800 being the first area of resistance.  A breakout above 1.800 would turn 1.865-1.880 into the next upside resistance area with longer term resistance at the 40 day average currently at 2.005.

The 10 day average at 1.715 is primary support today as a drop back under this level will turn the near term trend back down with the 1.610 low again becoming key support.  A close under 1.610 support which is a monthly low dating back to August 1998 would be a very bearish technical signal turning 1.500-1.520 into the next longer term support.

Bottom line – Bulls taking over control of the market.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bullish

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