The new front month November 15 natural gas contract started
out Monday’s session on the upside gaining over 3% in early trade. But
has been the case for the several months, the rally failed to hold as the
market sold back off the morning highs into the session’s close.
For the day, the November contract was up .039 but bearishly
settled at 2.670, near the daily low.
Daily close back under the 10 day moving average on Monday
keeps the near term trend down with last week’s 2.591 low being the first area
of support. Longer term support is the 2.521 low set by the now expired
October 15 contract followed by the 2015 spot low of 2.443 set in
early-May. The 2.443 weekly low remains the downside measuring objective
for the bearish triangle on the weekly chart.
The 10 day moving average at 2.670 is the first area of
resistance today followed by Monday’s 2.720 high. Longer term resistance
is the 40 day moving average currently at 2.790.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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