The March 15 natural gas contract on Thursday broke out below 2.750-2.760 weekly low support that had held for nearly 4 weeks.
With support broken, the March contract tumbled to a 2.672 daily low settling at 2.719, down .123 or 4.3%.
Selling has continued overnight dropping the March under yesterday’s 2.672 low. The next downside objective now becomes the 2.575 weekly low from August 2012.
If 2.575 weekly low support is reached and broken, there is not much downside support on the weekly chart until the 2.170-2.230 level.
Former support between 2.750-2.760 now becomes the first level of upside resistance followed by the 10 day moving average at 2.860.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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