The November 15 natural gas contract has gapped under
2.230-2.250 support in the overnight session bottoming out at a 2.181 overnight
low.
Today’s early selling follows weakness in the market last
week during which the November contract was heavily sold losing .144 or 5.9% to
settle Friday at 2.286.
The trend remains down with weekly chart lows at 2.168-2.180
being the next support area followed by 2.100. Longer term support is the
2012 spot contract low of 1.902.
The overnight gap between 2.238-2.275 is the first area of
resistance with longer term resistance at the 10 day moving average currently
at 2.410.
Even though the technical picture remains bearish, current
weakness could be the final sell off before a seasonal low is set in the
market.
The funds have been lightly added to existing long positions
in the natural gas market. Friday’s Commitment of Trader’s report showed
the funds long 87,948 contracts as of last Tuesday’s close, up 2,480 from the
previous week.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment