The natural gas market now enters into an 8th week of sideways, range bound trade.
The weekly continuation chart shows the long term trend line support that was broken in mid-July near the 4.000 level. Over the ensuing 2 months, the market has been chopping between support the mid-lower-3.700 level and resistance at the recent 4.101 high.
A rally two weeks ago stalled below former trend line support which resulting in a sell off during last week’s trade which dropped the spot October 14 contract toward lower-3.700 support. This support held for a third time.
The inability to push down to new price lows might be a factor behind today’s strength in the market.
In order to turn the longer term market trend back higher, spot natural gas is going to need to close back above former trend line support just above the recent 4.101 high.
No comments:
Post a Comment