Last week was technically important for the natural gas market as the March 15 contract broke out above a key resistance area.
This resistance was the 40 day moving average over the which the March contract hasn’t trade since last November when the market was topping out at a winter high.
The March contract rallied over this average at 2.870 today in Friday’s early trade remaining well bid into the close settling at 2.951. For the week, the March contract gained .147 or 5.2%.
Friday’s breakout above the 40 day average turns the primary market trend sideways to higher. The 40 day moving average now becomes the first area of support today at 2.870 followed by the 10 day moving average at 2.795.
The lower-3.000 level is primary resistance today with a 3.039 overnight high. Longer term resistance is at 3.130-3.150 and the 3.299 mid-January high.
Friday’s Commitment of Trader’s report showed the funds long 90,392 futures contracts in the natural gas market, up 14,312 or 19% from the previous week.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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