The August 15 natural gas contract fell back toward 2.730-2.740 weekly low support in early trade on Monday which held keeping the market is a two week sideways range.
The August contract spent the remainder of the session in
listless trade settling the day at 2.756, down .066 (2.3%).
The August contract rallied up to a 2.800 overnight high
closing the small open gap area between 2.787-2.795 created on Monday’s
open.
The primary trend remains sideways to lower with a breakout
under 2.730-2.740 weekly low support needed to trigger the next leg down in the
market. If 2.730 support is broken, the 2.569 and 2.588 weekly lows from
April and June will become the next downside objective. A breakout
under weekly low support would be another bearish technical signal for the
market.
The upper end of the past 2 week range at 2.870-2.885 is
primary resistance as a breakout above this area will turn the near term
trend back up. Longer term resistance is the 200 day moving average at
3.155 which coincides with the 3.167 mid-May high. A breakout above these
two resistance areas would turn the longer term trend back up.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – BullishShort Term Trend Following Index - Bearish
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