After rallying up and holding below a key area of resistance on Tuesday, the March 15 natural gas contract trended back lower in yesterday’s trade losing .092 (3.3%) to settle at 2.662.
The trend for the market remains down with the 2.575 August 2012 weekly low extending up to the 2.608 March contract low being primary support. If 2.575-2.608 support is broken, there is little underlying support on the weekly chart until the 2.170-2.230 area.
Former daily low support between 2.750-2.800 remains key resistance with this week’s rally topping out at a 2.783 high. A breakout above 2.750-2.800 would be a bullish signal turning the near term trend back up with following resistance at 2.980-3.020.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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