natural gas

natural gas

Friday, March 18, 2016

Natural Gas Corner - Technical Update - Key Resistance Level Being Tested Today




The April 16 natural gas contract has moved up to a new 1-month high in today’s early session as it tests an important area of resistance.

This resistance is the 40 day moving average at the 1.955 level today.  Yesterday’s rally topped out at a 1.952 high.   A breakout above the 40 day average would be another bullish technical signal for the April contract turning the 2015 contract low at 2.017 into the next upside resistance.

With the April contract closing higher 9 out of the past 10 trading sessions, profit-taking might become a factor in today’s session if 40 day moving average resistance isn’t broken.

Former resistance between 1.885-1.900 now becomes the first area of support followed by the 10 day moving average at 1.820.  A close under the 10 day average will turn the trend back down.

Longer term, a retest of  the 1.611 contract low is expected once a top forms on this current rally.

Bottom line – A key test of upside resistance in today’s session.

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

No comments:

Post a Comment