The April 16 natural gas contract moved higher in a late
session rally on Tuesday gaining .031 (1.8%) to settle the day at 1.742.
Yesterday’s rally was short-lived as sellers have come in
during today’s early trade dropping the April contract to the lowest spot price
level since 1998 at the current 1.657 low.
The overnight low is the first area of support today
followed by 1.610 which was a monthly low dating back to August 1998. If
1.610 support is broken, 1.520 will become the next downside objective.
Wednesday’s 1.775 high is the first area of resistance today
followed closely behind by the 10 day moving average currently at 1.800.
Bottom line – How low will it go?
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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