Natural gas march delivery opened a gap on February 11th, moving above the dashed red line. Today it touched that line again from above but it did not try to force it. We are sure that it will try to close the gap but it is difficult to set a time frame.

 

Today in the news we read a peaceful resolution between Russia and Ukraine on debt and gas issue. This will favor a normal gas supply to the whole Europe and then a lower risk on more expensive gas. This view allow us to consider that the gap will be close soon. First support is at 8.29 and then 8.123. Resistances at 8.755 and 9.05.

 

 

It seems that NYMEX Natural Gas is showing great strength to run towards the resistance we gave on our last analysis (9.080). Today it hit its high at 9.120 touching again the upper trend line. This is the highest trade since February 2006. We reckon that this market will be weaker as the March delivery will move closer to its expiry. RSI is high and a technical downside correction is more likely, so we speculate on a short position.