The new front month March 15 natural gas contract on Wednesday traded back toward the lower end of the past month’s range losing .093 (3.1%) to settle at 2.842.
Similar to the now expired February 15 contract, the 2.750-2.760 level remains key support. A drop under 2.750 will keep the primary market trend bearish with the 2.575 low from August 2012 becoming the next downside support.
The 10 day moving average which held as resistance at the 2.924 overnight high is the first area of resistance today followed by 2.980-3.020. A breakout above lower-3.000 level would turn the near term trend back up with the 40 day moving average currently at 3.220 being the next upside resistance.
A breakout above the 40 day moving average at 3.250 as well as the 3.299 mid-January high is needed to turn the longer term trend back up.
Although the natural gas market has been in a sideways trend for nearly 4 weeks, a final low in the market has likely not been set.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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