The natural gas market remains in a bearish downtrend settling lower for a seventh consecutive week in last week’s trade.
After topping out at a 3.176 high early last Monday, the February 15 contract traded down to a 3.811 low by the following session. The market firmed slightly into Friday’s close with the February contract setting at 2.946, down .057 for the week.
The 2.805 contract low set two weeks ago extending down to 2.750 is the first area of support with longer term support at the 2.575 low from August 2012.
The 10 day moving average which held as resistance throughout all of last week’s trade is at 2.960 today and is the first area of resistance. As long as the market holds under the 10 day average, the trend will remain down.
Friday’s Commitment of Trader’s report showed the funds long 107,003 natural gas contracts, up 1,754 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Short Term Trend Following Index – Bearish
Long Term Trend Following Index - Bearish
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