Natural Gas Technical Update - September Contract Retesting 3.800 Support

A bounce higher on Thursday which settled the September 14 natural gas contract back over the 3.900 level has been followed today by a price break back lower.

All of yesterday’s .075 gains have been erased in early trade today as the September contract again retests 3.800 support.  If 3.800 support is broken, 3.760 and the 3.725 July low will become the next downside support levels.

If 3.725 support is broken, the 3.582 contract low set last November will become the next primary support.

There is a good chance the market can hold above the 3.725 July low.  If this occurs, it would be a successful retest of support and could be the final sell off before the winter rally takes hold.  The next few sessions will be technically important for the market to see if support can hold.

Technical Indicators:  Moving Average Alignment – Bearish

                                       Long Term Index – Bearish
                                       Short Term Index - Bullish