Natural gas futures for March ’15 delivery tanked on Monday to $2.879 as the commodity broke a key support level at $2.92.
Although the large red candle was unwelcome by natural gas bulls, the recent reversal uptrend still remains in tact. However, bulls will look for the commodity to hold the lower channel in Tuesday’s action in order for the uptrend to continue.
Conversely, natural gas bears will look for a break of this channel and for the commodity to break support at $2.79. A break of the $2.79 support level will likely see the commodity retest its 20-day moving average at $2.76.
The RSI and MACD continue to show bullish characteristics and trend positively. In fact, yesterday’s red candle should be welcomed by natural gas bulls because it left room for the commodity to have a strong rally on the heels of its other bullish variables.
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