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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