Natural gas prices traded sideways for a second day on
Wednesday as today’s expiring September 15 contract held in a narrow .046
intraday trading range.
The September contract settled Wednesday’s session at 2.693,
up 8 ticks for the day, holding just above 3-month low support at 2.624 set
earlier in the week.
A drop under 2.624 followed by weekly low support between
2.590-2.600 is needed to keep the current downtrend intact.
If this occurs, 2.440-2.450 and 2.230-2.250 will become the next longer
term support areas.
The 10 day moving average which held as daily high
resistance on Wednesday is resistance again today at the 2.710 level. Longer term resistance is the 40 day moving
average currently at 2.790.
The bearish triangle pattern triggered on the weekly chart
two weeks ago remains in play. The point
1 low of the triangle at 2.443 is the initial downside objective with greater
downside potential if the point 1 low is broken as support.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index
- Bearish
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