natural gas

natural gas

Wednesday, October 7, 2015

Natural Gas Corner - Technical Update - Bottom May Be Forming In The Market




The November 15 natural gas contract closed .020 higher on Tuesday as it held for a second day above the 2.403 low set last Thursday.

The inability to push the market down to a new low over the past two sessions has brought in early buying in today’s session.  The 2.491 weekly high has been broken overnight turning the 10 day moving average at 2.540 into the next upside resistance.

If the November contract can rally above 10 day moving average resistance, it could be an early signal a market reversal is in progress.

The 2.403 contract and new 2015 spot contract low set last Thursday extending down to  2.385 remains primary support.   If broken, the trend will remain down and 2.230-2.250 will become the next longer term support area.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish

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