natural gas

natural gas

Thursday, September 17, 2015

Natural Gas Corner - Technical Update - Bearish Breakout Today?




Natural gas prices fell lower for a second day on Wednesday with the spot October contract trading back toward the lower end of the past 3 week  range.

A rally higher earlier this week was another short squeeze which has been followed by renewed selling.  The October 15 contract lost .068 (2.5%) on Wednesday settling at 2.660 and is down nearly 5% from the 2.794 weekly high set on Tuesday.

Daily settle back under the 10 day moving average turns the near term trend back down with the 2.633 contract low being the first area of support.  Longer term support levels from the weekly chart are at 2.550-2.560 and 2.440-2.450.

The 10 day moving average at 2.690 is the first area of resistance today followed by the 2.794 weekly high. 

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bullish

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