March natural gas prices established a higher high during the early morning hours that closed Sunday’s opening gap. Perhaps the market had become a bit oversold in the short term and due for a bounce. Meanwhile, the price action in March natural gas continues to dance around in a symmetrical triangle pattern that offers resistance at $2.6180 and support at $2.340. The price direction into the formation was negative, and favors a continuation of that trend ahead. Meanwhile, US weather forecasts continue to point to normal to above normal temperatures in the Eastern half of the country and normal to below normal in the Western half of the country out to February 27th. For now it appears that the natural gas market is in a bit of a holding pattern as it digests record production and storage against US producer cutbacks and a falling US rig count.
NATURAL GAS (MAR): Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day moving average is a negative short-term indicator for trend. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside target is now at 2.361. The next area of resistance is around 2.475 and 2.510, while 1st support hits today at 2.401 and below there at 2.361.
StockMarketNews Research Team