Natural Gas March Contract - Forecast for 02/04 by Daytradeideas.com

Nat Gas saw resistance at 3.374/386 cap the market again and we held above 3.258/240 support. The outlook is quite weak so we may see this level tested today and we watch for a break lower to target last 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.

3.374/386 remains resistance today and should be hard to beat with the market likely to remain under pressure, but if we break last week’s high at 3.396 we should close the gap towards 3.426 and top out here. We exit any longs and try shorts with a stop above 3.445.

Long term levels

3.933     2012 High

3.800     200 Week Moving Average

3.748     December High

3.420     100 Day Moving Average

3.396     Last Week’s High

3.348     100 Week Moving Average

3.207     Last Week’s Low

3.079     Weekly 38.2% Fibonacci

3.032     200 Day Moving Average

The article was first published by DayTradeIdeas.com