Natural Gas Technical Update - New 2015 And Contract Low Set On Monday

After trading down to a new 2015 and contract low of 2.608 in Monday’s early trade, the March 15 natural gas contract reversed back higher into the close.  By day’s end, contract had lost only .011 settling at 2.680.

 

Yesterday’s 2.608 low held above the next level of support on the weekly chart from August 2012 at 2.575.  This area is an important level of support as a fall under 2.575 could see a continued downtrend toward the early-2012 weekly lows between 2.170-2.230.

 

Former support broken last week between 2.750-2.760 now becomes the first area of resistance followed by the 10 day moving average at 2.810.  A breakout above both resistance areas would turn the near term trend back higher.

 

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish