Natural Gas

12 March 2018, 13:36
Dragan Drenjanin

Possible pull back on supports


Above 2.52 USD the Natural Gas, continuation (J18), NewYork is heading toward 2.92 USD over the short term. Below 2.52 USD the movement would reverse and then correct toward 2.46 USD.


The MACD is negative but is situated above its signal line: the trend is changing. Now, the MACD must clear zero for the rise to continue in the coming days. The main indicator of the movement's strength (RSI) shows that the technical situation is quite healthy, as it is not overbought. The volumes traded are less than the average volumes over the last 10 days.


Since the recent low at 2.55 USD the commodity has been in a phase of technical recovery towards its 50-day moving average located at 2.89: the price reaction on this level will allow us to envisage a continuation of the movement in the medium term. To alleviate this position, we could wait to test the short-term resistances located at 2.92 USD and 2.99 USD. The supports are at 2.59 USD then at 2.52 USD .

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