Nat Gas outlook for March; still negative
By Kase and Company, Inc. - Thu 21 Feb 2013 08:00:10 CT
Related Keywords: Energy

The outlook for March natural gas is still negative even though prices bounced from a $3.125 swing low on Tuesday. The follow-through on Wednesday was lackluster and it looks as though prices will test support at $3.22 early Thursday. A close below $3.22 would then call for another test of support near $3.10 where a potential triple bottom is forming. That said, if prices close over $3.32 look for at least $3.45 to be met.

Retracements
The $3.22 target is the 50% retracement from $3.125 to $3.313. Below this there is support at $3.17, but the key target is $3.10 as discussed above.

NGH13 Retracements to $3.313

 

The 38% retracement from $3.646 to $3.125 is $3.32. This is also a key swing high on the intraday charts. A close over $3.32 is not expected tomorrow, but would open the way for an extended correction to $3.45.

NGH13 Retracements to $3.125

 

Candlestick Review
Tuesday’s move up completed a bullish morning star, but the pattern failed to be confirmed with a close over $3.297 on Wednesday. A move back below Tuesday’s $3.22 midpoint will negate the pattern and call for the move down to continue.

NGH13 Daily Candlesticks

 

Review of Momentum Status
The most recent momentum signal was a bullish divergence on the three-cent Kase Bar chart. The move up stalled on Wednesday and may already be complete.

NGH13 Intraday Momentum

 

Kase Comments has been provided to you by Kase and Company, Inc. CTA. Written by Dean Rogers AP and edited by Cynthia Kase, CMT, MFTA. See www.kaseco.com or contact Dean Rogers at 505-237-1600 for further information or a free trial of Kase’s weekly technical forecast.

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