Natural Gas Technical Update - 3.800 Support Broken On Wednesday But July Low Holds As Support

The November 14 natural gas contract on Wednesday traded under the 3.800 level for the first time since July bottoming out at a 3.798 intraday low.

However, the November contract was unable to push under the previous low of 3.786 set last July settling the day at 3.800, down .016.

The primary trend remains sideways to lower with a breakout under 3.786-3.798 weekly low support needed start another leg down for the market.  If support is broken, 3.720-3.730 and the 3.658 contract low set last November will become the next downside support levels.

The 10 day moving average at 3.880 is the first area of resistance today followed by the 40 day average at 3.960.  The 40 day moving average held as resistance earlier in the week near Tuesday’s 3.955 high.

Longer term resistance levels are the 4.163 and 4.184 weekly highs posted over the past few months.  A breakout above these highs is needed to turn the longer term trend back up.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bullish
                                         Short Term Trend Following Index - Bearish