It was a volatile period of trade for the April 15 natural gas contract which swung in a fairly .361 range last week.
The April contract topped out at a 3.045 in last Monday’s early trade falling to a 2.684 low by Friday. Daily settle on Friday came in at 2.734, down .238 or 8% for the week.
Last week’s drop under the 10 and 40 day moving averages turns the near term trend back down.
The 10 and 40 day averages have converged between 2.820-2.830 are primary resistance. Longer term resistance is between 2.890-2.900 and last week’s 3.045 high.
2.680-2.690 is the first area of support followed by weekly low support between 2.567-2.589. A drop under weekly low support would be a very bearish indicator for the market.
The funds have increased their net long position in the natural gas market by over 40% during the past two weeks. Friday’s Commitment of Trader’s report showed the funds long 108,075 futures contracts, up 17,683 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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