The April 16 natural gas contract has sold down to a new
contract low at 1.690 in the overnight session as the market again retests an
important area of support.
This support is a spot contract low first posted last December
at the 1.684 level and subsequently tested last week by the expired March 16
contract which bottomed out at a 1.682 low.
A drop under 1.682-1.684 weekly low support would keep the
primary market trend down with the next
support from the monthly chart coming in
a 1.610.
Former support at 1.730-1.740 now becomes the first area of
upside resistance followed by the 10 day moving average currently at 1.855.
Friday’s Commitment of Trader’s report showed the funds long
65,117 natural gas futures, up 3,422 contracts from the previous week.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
Sectoral oil & gas stocks will remain on investors' radar after media reports suggest that Indian oil ministry seeks cut in excise duty on petrol, diesel in the upcoming 2018-19 budget to cushion the impact of rising oil prices.
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