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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