natural gas

natural gas

Monday, November 30, 2015

Natural Gas Corner - Technical Update - New Contract Low Set Overnight




The January 16 natural gas contract which became the new front month contract last week has traded down to a new contract low at 2.175 in today’s session but has since traded back toward unchanged.

Today’s early weakness follows selling last week which dropped the January contact lower by .079 or 3.4% during the holiday-shortened week settling Friday at 2.212.

The trend at this point remains down with the 2.175 overnight low being the first area of support followed by weekly chart support at 2.051.  Longer term support is the 1.948 monthly low set in late-October.

2.220-2.230 is the first area of resistance today followed by the  10 day moving average currently at 2.355.

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

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