The new front month April 15 natural gas contract has broken under an important area of support near 3.840-3.850 in the overnight session.
The support areas broken are the 10 and 40 day moving average as well as a trend line drawn from the 2.589 February low. If the breakout holds today, the trend for the market will turn back down.
The next area of support under the current 2.801 low is 2.750-2.760. Longer term support is the 2.589 contract low which is just above 2.567-2.575 weekly chart support.
The 10 and 40 day moving averages between 2.840-2.850 now becomes the first area of upside resistance followed by 3.000-3.045 where the market stalled out earlier this week.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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