The January 16 natural gas contract has traded down to
another new contract low in the overnight session at the 2.146 level.
Overnight selling follows a strong sell off on Wednesday
which dropped the January contract lower by .066 or 2.9% to settle the session at
2.165.
The trend remains down with the 2.051 low set by the December
15 contract being the next primary support followed by 1.948 which was a 3-year low set in October. If the market can hold above the 1.948 level
as support in upcoming trade, a multi-year low could be set.
The 2.259 weekly high extending up to the 10 day moving
average at 2.265 is the first area of resistance today followed by 2.350-2.360. Longer term resistance is the 40 day moving
average currently at 2.530.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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