March natural gas prices grinded higher during the early morning hours and back up toward Tuesday’s high of $2.596. March natural gas saw gains of more than 4.0% during yesterday session, helped in part by technical buying and reports that US nuclear outages have pushed offline capacity back above the fiveyear average. By some accounts, reduced US nuclear capacity could be worth as much is 0.8 bcf per day of added natural gas demand. Meanwhile, US weather forecasts out to February 28th point to sluggish heat-related demand for natural gas, with normal to above normal temperatures throughout the Eastern part of the country. March natural gas prices remain inside of a symmetrical triangle pattern, with resistance at $2.618 and support at $2.340.
NATURAL GAS (MAR): Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The intermediate trend could be turning up with the close back above the 18-day moving average. Since the close was above the 2nd swing resistance number, the market’s posture is bullish and could see more upside follow-through early in the session. The next downside target is now at 2.390. The next area of resistance is around 2.615 and 2.659, while 1st support hits today at 2.481 and below there at 2.390.
StockMarketNews Research Team