Natural gas prices continued lower on Wednesday as the
December 15 contract closed back under 10 day moving average support.
Daily settlement for the contract came in at 2.263, down .057 or 2.4% for the
session.
The near term trend is now bearish as the December contract
retests 2.188 contract low support. If this support is broken, the bottom
of the open gap area on the daily continuation chart at 2.105-2.115 will
become the next downside support. Longer term support is the 1.948 low
set by the expired November 15 contract.
The 10 day moving average broken as support on Wednesday now
becomes the first area of resistance today at 2.300 followed by 2.390-2.400.
2.390-2.400 is a key technical resistance level for the
December contract. A breakout above this area could indicate a market low
has been set.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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