The September 15 natural gas contract broke out under key
support at the lower-2.700 level on Tuesday triggering a bearish triangle
pattern on the weekly chart.
Selling from the breakout point was uneventful as the September
contract bottomed out at a 2.680 daily low but moved back higher into the close
to settle at 2.704, down .024.
With little follow through selling initiated on yesterday’s
breakout, the market could again be ready to turn back higher to squeeze out the
weak shorts.
Former support between 2.720-2.740 now becomes resistance
with longer term resistance at the 10 and 40 day moving averages currently at
2.800-2.805.
Tuesday’s 2.680 low is the first area of support followed by
2.650-2.660. Longer term support levels are the 2.590-2.600 weekly lows
set 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 areas.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment