The March 15 natural gas contract has rallied back higher in the overnight session and is currently trading above the 40 day moving average for the first time since last November.
Overnight strength follows a choppy session on Thursday during which the March contract traded in a .113 daily range but finished the day nearly unchanged settling at 2.834, up 3 ticks.
If the breakout above the 40 day moving average at 2.875 holds, the near term trend will turn sideways to higher with 2.980-3.020 becoming the next upside resistance.
The 40 day average at 2.875 now becomes the first area of support following by the 10 day moving average at 2.750. A drop back under both averages is needed to turn the trend back down.
Technical Indicators: Moving Average Alignment – Neutral
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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