natural gas

natural gas

Monday, January 4, 2016

Natural Gas Corner - Technical Update - Market Surges By Over 30% In 6 Days




The February 16 natural gas contract gained .584 or 32.4% over 6 days beginning at the 1.802 contract low up to last week’s 2.386 high.

The  market trended sideways over the last two days of 2015 with the February contract settling Thursday at 2.337.

The trend has turned up following the breakout above the 10 and 40 day moving averages.  The 40 day moving average at 2.260 is the first area of support today followed by the 10 day average at 2.145.  A close under both averages will  turn the trend back down.

Last week’s 2.386 high is the first area of resistance with a breakout  above this level turning 2.580-2.600 into the next longer term resistance.

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

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