The natural gas market has crashed to a new 13-year price
low in the overnight session after trading down to a 1.862 overnight low.
Overnight weakness follows heavy selling last week during
which the spot January 16 contract lost .196 (9%) over the five days of trade
settling Friday at 1.990.
The 1.862 overnight low is the first area of support today
followed by 1.750-1.760. Longer term support is the 1.610 monthly low
from August 1998.
The open gap between 1.923 and 1.959 created on today’s open
is the first area of resistance followed by 2.010-2.020. Longer term
resistance is the 10 day moving average currently at 2.085.
The funds are nearly out of the natural gas market as shown
by Friday’s Commitment of Trader’s report. The current fund long position
(futures only) as of last Tuesday’s close was 26,212 contracts, down
1,744 from the previous week.
Technical Indicators: Moving Average Alignment -
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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