natural gas

natural gas

Monday, March 7, 2016

Natural Gas Corner - Technical Update - Post-Winter Seasonal Low May Be Set




The natural gas market last week held above a key technical support level.

This support level is a previous price low from August 1998  on the monthly chart at the 1.610 level. 

This support was first tested last Thursday following release of the EIA weekly storage report and later during Friday’s session by the April 16 contract.

The April contract for a third time retested 1.610 support today bottoming out at a 1.612 early morning low.  As support has held, the market has since turned back higher in today’s session.

A post-winter seasonal low appears to have formed in the natural gas market.  A higher close for the week on Friday would be further confirmation a low has been set.

A drop back under 1.610 will negate the bottom turning the 1.500-1.520 level into the next longer term support.

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