Natural Gas March Contract - Forecast for 02/06 by Daytradeideas.com

Nat Gas has broken resistance at 3.374/386 closing the gap towards 3.426 and we have topped out here as predicted. We exited longs and tried shorts with a stop above 3.445 and so far this trade is working as we look to take profit towards 3.390/3.375 support. This may mark the low but a break could then target 3.350/45 then 3.310 today.

A break above 3.445 however signals continued strength to a target of 3.478. This should offer a good selling opportunity today with a stop above 3.485.

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