The October 15 natural gas contract remains locked in a
three week sideways trading range alternating between 2.633 contract low
support and resistance at the 2.725-2.735 level.
The October contract did gain .038 (1.4%) in last week’s
trade settling Friday at 2.693 but it has been unable to breakout from the
sideways range.
The 2.725-2.735 level remains primary resistance followed by
the 40 day moving average currently at 2.795. A close above the 40 day
moving average will turn the near term trend back up also invalidating the
bearish triangle pattern on the weekly chart.
The 2.633 contract low is the first area of support followed
by weekly chart support at 2.550-2.560 and 2.430-2.450. Longer term
support is at 2.230-2.240.
Friday’s Commitment of Trader’s report showed the current
fund long position for natural gas at 94,695 contracts, down 4,690 from the
previous week.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index – Bullish
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ReplyDeleteNatural Gas Supply Outlook Report byThe Business Research Company deals with the supply chain for natural gas, from the production stage, through processing and transportation, to distribution and consumption by industrial and retail customers.
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