Natural Gas Corner - Technical Update - Key Support Broken On Tuesday

The August 15 natural gas contract broke out on Tuesday under 2.730-2.740 weekly low support which keeps the primary market trend down.

The August contract is currently trading higher on Wednesday from Tuesday’s 2.716 daily settle.  The 10 day moving average at 2.785 is the next longer term resistance followed by the 40 day moving average at 2.840.

Tuesday’s 2.688 low is  the first area of support with longer term support at  the 2.569-2.588 weekly lows set during April and June.  A drop under weekly low support would turn 2.440-2.450 into the next downside support.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish