The October 14 natural gas contract closed lower for a third consecutive day on Thursday losing another .028 to settle at 3.819. This contract is now down .312 or 7.6% from last Thursday’s 4.101 high down to yesterday’s 3.789 low.
Yesterday’s 3.789 low was important as it held above 3.740-3.760 weekly low support. This support needs to be broken to keep the market trend down.
A drop under 3.740 would turn 3.724 spot contract low into the next support with longer term support at the 3.589 contract low from last November.
The 10 and 40 day moving averages have converged between 3.915-3.930 and remain primary resistance.
Longer term resistance is last week’s 4.101 high and is a former weekly chart trend line support. A close back over this trend line is needed to turn the longer term trend back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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