natural gas

natural gas

Friday, November 27, 2015

Natural Gas Corner - Technical Update - New Contract Low Set Overnight For January 16 Contract




The new front month January 16 natural gas contract has sold down to a new 2015 and contract low in the overnight session at 2.223 keeping the bearish technical downtrend intact.

The next downside support beneath the contract low comes from the weekly chart at 2.051, a low set by the December 15 contract.  Longer term support is at 1.948, a weekly low set in late-October.

Near term, the market could continue lower but the above-mentioned lows for the market could in fact be multi-year price lows.

The 2.347 weekly high is the first area of resistance followed by the 10 day moving average currently at 2.400.

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

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