natural gas

natural gas

Tuesday, March 22, 2016

Natural Gas Corner - Technical Update - Big Test For The Bulls Today




The natural gas market was heavily sold to begin the new week of trade on Monday as the spot April 16 contract lost .079 or 4.1% to settle at 1.828.

Yesterday’s daily settle came right on 10 day moving average support at the 1.840 level today.  A close under the 10 day average will turn the near term trend back down possible indicating a top has been set.  Downside support for today under the current 1.796 overnight low is at 1.750, 1.690-1.700 and the 1.611 contract low set in early-March.

The 40 day moving average, a trend line drawn over 3-month highs and last week’s 1.957 high are combined resistance between 1.930-1.960.  A breakout above this area would be a very bullish signal for the market indicating the post-winter rally has further room to run on the upside.

Once a top is set, a retest of the 1.611 contract low is expected.

Bottom line – Will  1.930-1.960 resistance hold?

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

No comments:

Post a Comment