The natural gas has closed down 5 out of the past 6 weeks
trading on Friday down to a new 14-year price low.
The spot January 16 natural gas contract bottomed out at a
1.684 morning low on Friday settling the day at 1.767. For the week, the contract lost .223 or
11.2%.
The market has bounced higher from last week’s low in today’s
early trade but the primary trend remains down.
Last week’s 1.684 low is the first area of support followed by monthly
low support from August 1998 at 1.610.
The 10 day moving average at 1.900 is the first area of
resistance today followed by the open gap created last Monday between
1.923-1.959. A breakout above the top of
open gap area will turn the near term trend back up.
The fund long position in the natural gas market jumped by
over 50% last week according to the Commitment of Trader’s report released on Friday. The fund long futures position rose by 13,268
contracts to 39,479 contracts.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following
Index - Bearish
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