natural gas

natural gas

Tuesday, March 17, 2015

Natural Gas Technical Update - Weekly Low Support Holds Again


The April 15 natural gas contract closed lower for a third consecutive day on Monday but held above key weekly low support near the 2.680 daily low.

With support holding again on Monday, the market has reversed back higher in the overnight session with the April contract currently attempting a breakout above 10 and 40 day moving average resistance between 2.765-2.775. 

Following resistance is at 2.864, a price set over the past two weeks.  A breakout above 2.864 would turn the 3.045 high from February into the next upside resistance  level.

Weekly low support between 2.660-2.680 remains primary support.  A close under this support would turn the 2.589 contract low into the next downside support with longer term support at the lower-2.400 level.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish
                                   Long Term RMI Index – Bullish
                                       Short Term RMI Index - Bullish

 

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