Natural gas prices closed higher on Wednesday as short covering
ahead of today’s EIA storage report ended five days of consecutively lower
closes.
A potentially bullish inside range bar (harami candlestick)
was posted on Wednesday but has not been confirmed with higher trade this
morning.
The primary trend remains down with the 1.879 contract low
set on Tuesday being the first area of support.
Longer term support from the weekly chart is at 1.780-1.790 and the
1.684 spot contract low set in mid-December.
The 1.963 weekly high is the first area of resistance
followed by the 10 day moving average currently at 2.000. Longer term resistance is the 40 day moving
average currently at 2.160.
Bottom line – Bears remain in control heading into today’s
trade.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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