The November 15 natural gas contract moved higher last week
from the 2.403 contract and new 2015 spot low set the previous week. Over
the five days of trade, the November contract gained .051 (2.1%) closing Friday
at 2.502.
The 10 day moving average at 2.495 today has been broken as
resistance. If the breakout holds, the near term trend will turn back up
with 2.590-2.600 being the next upside resistance. Longer term resistance
is the 40 day moving average currently at 2.690.
The 10 day moving average is the first area of support today
at 2.490 with longer term support at the 2.403 contract low. If contract
low support is broken, 2.230-2.250 will become the next longer term
support level.
The funds remain largely on the sidelines in the natural gas
market. Friday’s Commitment of Trader’s report showed the funds long
79,794 contracts as of last Tuesday’s close, up 662 from the previous week.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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