Natural Gas March Contract - Forecast for 02/20 by Daytradeideas.com
By Jason Sen | February 21, 2013 1:13 AM EST
Natural Gas caught us out with a break through 3.200/202 & then 3.245/250 as we reached 3.285. There is resistance here so we could top out but a break higher cannot be ruled out for a test of 3.320/328. This is the short term 61.8% & 38.2% Fibonacci level as well as last week’s high, but also 21 day & 100 week moving average resistance & with the market over bought in the short term this should cap today. However a break could target 3.383 next.
Strong support at 3.325 today but below here risks 3.20 then little to stop a retest of 3.140/125. Just below at 3.010/085 is 200 day MA, daily & weekly Fibonacci support & mid Jan lows so we should bottom here. Worth exiting shorts & trying longs with a stop below 3.050.
Long term levels
3.933 2012 High
3.796 200 Week Moving Average
3.748 December High
3.461 100 Day Moving Average
3.319 100 Week Moving Average
3.323 Last Week’s High
3.125 Last Week’s Low
3.095 200 Day Moving Average
3.079 Weekly 38.2% Fibonacci
The article was first published by DayTradeIdeas.com