natural gas

natural gas

Friday, December 4, 2015

Natural Gas Corner - Technical Update - Potentially Bullish Reversal Bar Posted On Thursday




After trading down to yet another new contract low at 2.131 in Thursday’s session, the January 16 natural gas contract moved back higher into the close settling at 2.185, up .016.

A bullish reversal signal called a doji cross Japanese candlestick formed on yesterday’s bar but the primary trend at this points remains down.  The 2.131 contract low is the  first area of support followed by 2.051, a low set by the December 15 contract.  Longer term and key support is the 1.948 monthly low set in late-October.

The 10 day moving at 2.245 extending up to the 2.259 weekly high is the first area of resistance today.  Longer term resistance is at 2.350-2.360 followed by the 40 day moving average currently at 2.510.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish

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