Natural gas prices continued lower on Wednesday with the October 14 contract losing an additional .043 (1.1%) to settle at 3.847. Yesterday’s loss comes on top of the 4.3% drop on Tuesday which closed the October contract below 10 and 40 day moving average support.
This was a bearish technical signal turning the near term trend back lower. The 3.740-3.760 weekly lows posted over the past 6 weeks will remain primary support in upcoming trade.
A drop under 3.740 would keep the primary market trend down with the 3.589 contract low posted last November then becoming the next downside objective.
The 40 day moving average is the first area of resistance at 3.925 followed by the 10 day average at 3.940. A breakout above these two averages followed by last week’s 4.101 high is needed to turn the near and longer term trend back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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