The October 14 natural gas contract pulled back from lower-4.000 resistance in Thursday’s trade falling back toward 10 and 40 day moving average support.
The lower-4.000 has now held as resistance four times over the past 9 weeks.
The October contract finished yesterday’s session at 3.910 losing .103 or 2.5% on the day.
Selling has continued today dropping the October below 10 and 40 day moving average support at 3.900. This is a bearish technical indicator turning the near term trend back down if the breakout holds.
The 3.740-3.800 level which has held four times as support over the past 9 weeks again becomes primary support today. A drop under 3.740 would keep the market trend bearish with the next level of support becoming the 3.589 contract low set last November.
The 10 and 40 day averages now become the first area of resistance at 3.900 followed by the 4.040 weekly high. Longer term resistance is the 4.101 high from late-August. A rally above the August high 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 - Bullish
No comments:
Post a Comment