The new front month December 14 natural gas contract broke out above 10 day moving average resistance on Wednesday gaining .057 (1.5%) to settle the day at 3.788. This was the first breakout above this average since early-October and could be the start of a trend turn back higher.
The December contract reversed back higher over the past two sessions after trading down to a new contract low of 3.620 in early trade on Tuesday.
With 10 day moving average resistance broken, the next resistance level to clear will be the former daily lows between 3.877-3.901. A close back over this former support which coincides with 40 day moving average resistance at 3.960 would be a good indication that a market low has been set.
A drop back under the 10 day moving average which is support today at 3.755 would turn the near term trend back down with following support at the 3.620 contract low.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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