The November 15 natural gas contract broke out under 2.400
support on Wednesday falling to a new contract and 2015 spot low at 2.382.
The November contract finished yesterday’s session at 2.404,
losing .072 or 2.9% on the day.
The trend remains down although the final level of support
has held at the 2.382 low. If this low is broken as support, 2.230-2.250
will become the next longer term support.
There is a small chance yesterday’s sell off to a new low
was the final thrust down cleaning out all the sell stops under the market
before reversing back higher. A higher close today could be the beginning
of a longer term trend back higher.
Today’s session will be another important technical test for
the market after yesterday’s sell off particularly with the EIA weekly storage
report due out later this morning.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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