The November 15 natural gas contract held above support at
the lower-2.400 level for a second day on Monday. If support continues to
hold, a double bottom low reversal could be forming.
The November contract bottomed out at a 2.430 intraday low
on Monday but was unable to rally above 10 day moving average resistance
settling the day at 2.442, up .012.
The 10 day moving average at 2.485 today is the first area
of resistance followed by last week’s 2.578 high. A breakout above last
week’s high and the 40 day moving average at 2.640 will turn trigger the double
bottom reversal and will also turn the longer term trend back up.
The 2.403-2.410 lows set over the past month are primary
support. If broken, the trend will remain down with 2.230-2.250 becoming
the next longer term support.
Technical Indicators: Moving Average Alignment -
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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