A floor in Natural Gas?

Natural Gas has cratered this month, but we finally have some signs of a floor.  

This 3.10-3.15 level has been a pivot for years with numerous tests.  Given the significance of the level, odds are this footing holds to either build a base or start a corrective rally

If this level gives out and we move lower, there aren’t a lot of clear support levels on the chart. 

We see price is stretched on the daily with price 6-7% below the 10D MA as it's broken Friday's inside day higher.  

The shorter intraday trend has turned higher with Monday’s rally.

Upside Fibonacci levels appear roughly every 10 cents with the major resistance area at 3.60.  

Again, it’s looking quite possible that we’ve seen a momentum overshoot of this support zone.  Even with Monday's rally it appears there is still good risk-reward for a swing trade long on any minor dip.

Trade 'em well!

I have a position in the long nat gas ETF UGAZ