The new front month December 15 natural gas contract remains
in very bearish downtrend falling to a new contract low at 2.263 during
Wednesday’s trade before settling at 2.298.
The December low comes over .300 above the 1.948 low set by
the now expired November 15 contract which remains a longer term support level.
2.324-2.340 is the first area of resistance today followed
by the open gap area between 2.450-2.483 created on Monday. Longer term
resistance is the 10 day moving average currently at 2.500.
The 2.263 contract low is the first area of support for the
December contract. The 1.948 low set earlier this week held above the
previous weekly low of 1.902 from April 2012. This could be a long term
low for the natural gas market regardless of the near term bearish outlook.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment