After trading down to a new contract low at 2.550 on Monday,
the October 15 natural gas contract traded nearly unchanged in Tuesday’s
session settling at 2.577, up 4 ticks.
The primary trend remains down with 2.550 being the first
area of support followed by the 2015 spot contract low of 2.443 set in
early-May.
The 2.443 May low is also the initial downside price
objective for the bearish triangle pattern on the weekly chart. If this
low is broken, 2.230-2.250 will become the next longer term support.
Former daily low support at 2.602 is now the first area of
resistance followed by the 10 day moving average currently at 2.650. As
long as the October contract trades under the 10 day average, the near term
trend will remain down.
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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