natural gas

natural gas

Tuesday, March 8, 2016

Natural Gas Corner - Technical Update - A Low May Be Set In The Natural Gas Market




The April 16 natural gas contract rallied higher off 18-year monthly low support on Monday to begin the new week of trade gaining .024 to settle at 2.690.

While Monday’s gains may seem small, the daily close came well above the 1.612 early morning low which for a third time in the past week held above a key support level.

The key support level is the August 1998 monthly low at 1.610 which by holding could mark a near term turn back higher in the market.

The 10 day moving average 1.725 is the first area of resistance today.  A close above this average today could bring in further short covering as well as new technical buying.  The next area of resistance above the 10 day average is between 1.775-1.790 with longer term resistance at the 40 day moving average currently at 2.050.

1.610 remains key support as a drop under will signal a resumption of the downtrend with  1.500-1.520 being the next downside support.

Bottom line – A near term low looks like it has been set in the natural gas market.

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

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