The April 16 natural gas contract staged several intraday
rally attempts on Thursday but each one was quickly sold back down as market
closed nearly the intraday low.
For the session, the April contract lost .039 (2.3%)
settling the day at 1.639.
The trend remains down as the April contract approaches the
next key area of support at 1.610, a monthly low from August 1998. The
lower-1.600 area has been an important level of support for the natural gas
market. If broken, 1.500-1.520 will become the next downside support.
1.680-1.690 is the first area of resistance today with
longer term resistance at the 10 day moving average currently at 1.750. A
close back above the 10 day average is needed to turn the near term trend back
up.
Bottom line – Will 18-year support hold?
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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