The natural gas market remains very weak as the November
contract has dropped to a new contract low in the overnight session.
Early selling today follows a large price drop on Tuesday during
which the November 15 contract lost .084 (3.1%) to settle at 2.586.
The 2.554 overnight and new contract low is the first area
of support today followed by 2.521 which was the low set by the now expired
October 15 contract.
Longer term support is the 2015 spot contract low at
2.443. This low is also the initial downside
measuring objective for the bearish triangle pattern on the weekly chart. If 2.443 support is broken, 2.230-2.250 will
become the next longer term support area.
The 2.611 overnight high is the first area of resistance
followed by the 10 day moving average at 2.645.
Current weakness should be the final leg down in the market before
a post-summer seasonal low is set.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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