The January 16 natural gas contract remains in a very
bearish downtrend which currently shows no signs of ending.
After breaking under 1.948 weekly chart support on Monday,
the January contract broke under 1.860 support during yesterday’s trade. This
turns 1.760, a monthly low from September 2001, into the next downside support.
Former support areas now become resistance the first being
1.860 followed by the open gap created on Monday between 1.923-1.959.
Longer term resistance is the 10 day moving average currently at 2.010.
The market may see short covering today ahead of tomorrow’s
EIA weekly storage report.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment