Natural Gas March Contract - Forecast for 02/01 by Daytradeideas.com

Nat Gas tested 3.258/240 support which we said may hold the downside and the low of the day was in fact 3.243. We then shot higher to hit our target of 3.374/386 over running slightly to 3.395 but this did cap the market as predicted but if we manage a push through this resistance today we should close the gap towards 3.426 and top out here. Wee exit any longs and try shorts with a stop above 3.445.

There is a little support at 3.310 today which is holding so far but below here look for 3.258/240 which may hold the downside once again. However a break targets the week’s low at 3.215/207. Below here we hit strong support from the 5 month trend line at 3.185 which should see us bounce but a break could keep the pressure on for 3.122 then 3.087.

Long term levels

3.933     2012 High

3.804     200 Week Moving Average

3.748     December High

3.645     Last Week’s High

3.411     Last Week’s Low

3.348     100 Week Moving Average

3.399     100 Day Moving Average

3.079     Weekly 38.2% Fibonacci

3.006     200 Day Moving Average

The article was first published by DayTradeIdeas.com