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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