natural gas

natural gas

Wednesday, August 6, 2014

September 14 Natural Gas Technicals - Approaching Key Resistance At 3.940


The September 14 natural gas contract broke out above 3.890-3.892 two week high resistance in Tuesday’s session closing the day at 3.897, up .063.

 With weekly high resistance broken, the next area of resistance now becomes former daily lows from mid-July at 3.940.  A rally and close above 3.940 would be further confirmation a seasonal low has been set in the  market.  Following resistance areas are at 3.980 and 4.070-4.080.

 Former weekly high resistance now becomes support at 3.890 (3.882 current low) with longer term support at the 10 day moving average at 3.830 and the 2014 low set two weeks ago at 3.725.

 The next few sessions should give a good indication as to whether the trend has in fact turned back higher.

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

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