After setting a new 2014 and contract low of 3.541 in early trade on Tuesday, the November 14 natural gas contract reversed course and rallied sharply higher into the close.
Gains for the day for the November contract which expires on today’s close amounted to .088 (2.4%) settling at 3.649.
The 10 day moving average held as resistance at yesterday’s high as well as in the overnight session.
Failure to breakout above this resistance today at 3.670 would be a bearish signal keeping the primary trend bearish.
If resistance holds, the 3.541 low set yesterday will again become primary support.
A breakout above the 10 day average would turn the near term trend back up possibly indicating a seasonal low in the market has finally been set.
The next few sessions will be technically important for the natural gas market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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