Natural Gas has given back most of last week's 13% rise and could fill the March Gap.

Natural Gas has given back most of last week's 13% rise and could fill the March gap. Since this gap higher natural gas prices have been stuck in a range of $2.198 to $2.534 and for traders this has provided some good swing trading opportunities. Right now Gas is around 30pts off the low of this range, however, if the market breaks this level at $2.198. Gas could easily fall to $2.100 and then $2.000 and it could do that within a matter of hours, hence this being a 'risk on' market right now. Another negative flashing indication on that the 50 & 100 SMAs have crossed over which over the past month has not happened therefore tilting the bias slightly bearish from a technical point. The range does still hold though and Natural gas could bounce higher toward the moving average as there is a divergence of nearly 6% between the moving averages and the actual price, therefore a bounce higher to meet the moving average could be possible and could provide a good trade opportunity. In previous attempts of gas moving such distance from the moving average, it has eventually either fallen or risen to match the averages which currently read $2.350.