The new front month September 15 natural gas contract
rallied higher on Wednesday during expiration of the August 15 contract closing
up for a third consecutive day. Gains for the session were .048 or 1.7%
with the September contract settling at 2.864.
The market could continue higher near term possibly back
toward last week’s 2.957 high. The longer term trend for the market
remains sideways to down with new lows expected in upcoming trade.
The 10 and 40 day moving averages between 2.820-2.840 are
the first support levels today following by the 2.735 weekly low set on
Monday. Longer term support levels are the 2.590-2.600 weekly lows posted
earlier this year. A drop under weekly low support would turn 2.440-2.450
and 2.230-2.250 into the next longer term support levels.
The 2.957-2.988 weekly highs are primary resistance followed
by the 200 day moving average currently at 3.060.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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