Natural Gas Corner - Technical Update - Potentially Bullish Breakout In Today's Early Trade

A rally back higher on Friday saved what initially appeared to be another down week for the natural gas market.

The December 15 contract rallied sharply higher during last Friday’s session gaining .101 (4.4%) for the day to settle at 2.361.  For the week, the contract lost .010.

Last week was technically important as the December contract traded back lower in retest of the 2.188 contract low set in late-October.  The December contract fell to a 2.234 low last Thursday holding above the 2.188 contract low as support.

With support holding, buyers came back on Friday and then today breaking the December contract above 2.390-2.400 resistance.  A close above 2.390-2.400 today will turn the near term trend back up with the 2.460 overnight high being the first area of resistance followed by the 40 day moving average currently at 2.545.

The 10 day moving average at 2.315 is the next level of support today  under 2.390-2.400.  Longer term support levels are the 2.188 and 2.234 weekly lows.   If these lows are broken as support, the trend will remain down and 2.105-2.115 will become the next downside support.

The weekly Commitment of Trader’s report has been delayed until today due to the Veteran’s day holiday last week.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bullish