The September 15 natural gas contract was hammered in
Thursday’s session as sellers used a small post-EIA report jump to aggressively
sell it down into the close. Losses for the day totaled .096 or 3.3% with
the September contract settling at 2.768.
Although the market was heavily sold on Thursday, the
September contract failed to break under Monday’s 2.735 weekly low as
support. With the September contract now trading back toward the lower
end of the past 3-month range, the market could see rally back higher near
term.
The overall trend remains sideways to lower with new price
lows expected once the market breaks out from the current range.
2.590-2.600 remains key long term support for the September
contract with a breakout under this level turning 2.430-2.440 and 2.230-2.250
into the next downside support areas.
The 10 and 40 day moving averages at 2.820-2.825 are
the first areas of resistance followed by the 2.895 high set yesterday.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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