The natural gas market remains in a very bearish downtrend
which currently shows no signs of ending.
The new front month December 15 contract took over yesterday
where the now expired November 15 contract left off selling down to a new
contract low.
After settling Thursday’s session at 2.257, down .041
(1.8%), the December contract has sold down to a new contract low at 2.188 in
today’s early session.
There is a good chance the 1.948 low set earlier this week
by the November 15 contract will be retested as support in upcoming
trade. This low is well below the current spot market price suggesting
further weakness ahead.
If the market can hold above the 1.948 low as support, a
long term low could be set in the market ahead of the winter heating season.
If 1.948 extending down to the April 2012 low of 1.902 is
broken as support, monthly lows from 2002 at 1.850 and 1.760 will become the
next downside support levels.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment