The February 15 natural gas contract traded down to a new 2015 and contract low of 2.783 in Monday’s session losing 5.1% or .151 to settle at 2.795.
The February contract was able to push down to a new low on Monday but held above weekly chart support at the 2.750-2.760 level.
Overnight buying has reversed the market back higher with the February contract trading up to 10 day moving average resistance at 2.920 which has held near the day high.
The 10 day moving average has held as daily high resistance the past two weeks. A breakout above 2.920 could bring in new buying with following resistance at 2.980-3.000 and last week’s 3.176 high.
A drop under 2.750-2.783 support is needed to keep the primary market trend lower. If 2.750 support is broken, the 2.585 low from August 2012 would become the next longer term support.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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