natural gas

natural gas

Tuesday, March 15, 2016

Natural Gas Corner - Technical Update - New 3-Week High Set On Tuesday




The April 16 natural gas contract traded flat on Monday closing the day nearly where it began at the 1.819 level.

The near term trend remains up with the new 3-week high at 1.871 set earlier today being the first area of resistance followed by 1.895-1.900.  Longer term resistance is the 40 day moving average currently at 1.980.

Monday’s 1.771 low is the first area of support followed by the 10 day moving average currently at 1.730.  A close under the 10 day average will turn the near term trend back down with the 1.611 contract low being the next area of support.

Longer term, the near term trend could surprise on the upside but the longer term trend remains down.

Bottom line – Continued short-squeeze expected.

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

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