Natural gas prices traded generally higher on Tuesday on light short covering as spot contract low support continues to hold.
This low at 3.541 set last October needs to be broken to keep the current downtrend intact. The January 15 contract traded to a 3.585 low on Monday but hasn’t been able to yet push down to new lows.
3.541-3.585 will remain primary support this week. A drop under 3.541 would turn the weekly lows from late-2013 at 3.380-3.400 into the next longer term support level.
3.700-3.720 is the first area of resistance followed by the 3.785 weekly high. Longer term resistance is the 10 day moving average at 3.845.
The market could be near a turning point back higher if 3.541 support isn’t broken soon.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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