Early selling on Tuesday dropped the February 15 natural gas contract to a 2.811 early morning low. Sellers were unable to push the contract under the 2.805 contract low set last week resulting in an upside reversal. By the session’s close, the February contract had gained .056 to settle at 2.938.
The primary trend for the market remains down with 2.805 extending down to 2.750 being the first area of support. A drop under 2.750 would turn the 2.575 weekly low from August 2012 into the next downside support.
The 10 day moving average at 3.030 is the first area of resistance followed by Monday’s 3.176 high.
A breakout above Monday’s high is needed to turn the near term trend back up
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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