The April 15 natural gas contract remains mired in a 3-month sideways range trading between the 2.650-2.700 area as support and the lower-3.000 level as resistance.
In yesterday’s trade, the April contract moved back lower erasing the previous day’s gains to settle at 2.723, down .063 (2.2%).
Although the market has been range bound, the primary trend remains sideways to lower with a breakout under 2.680-2.700 weekly low support needed to spur the next leg down in the market. If weekly low support is broken, the 2.589 contract low will become the next downside support followed by the 2.400-2.450 level.
The 10 and 40 day moving averages at 2.765-2.780 area the first areas of resistance today followed by upper trend line resistance currently near 2.900. A breakout above this trend line followed by the 3.045 February high will turn the longer term trend back up.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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