An 8%+ rally higher on Monday by the January 16 natural gas
contract was followed by a small pull back in yesterday’s session with the
contract losing .023 to settle at 1.888.
The market held up well on Tuesday given the sharp upward
gains made on Monday possibly indicating a near term and possibly long term low
has been set.
Monday’s 1.948 high extending up to 1.959 (top of open gap)
is the first area of resistance followed by 1.990-2.010. A breakout above
lower-2.000 resistance is needed to turn the near term trend back up.
The 10 day moving average at 1.880 is the first area of
support today followed by 1.750-1.760. Longer term support is the 1.684
contract low set on Monday. If contract low support is broken, 1.610 will
become the next downside support.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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