After holding above lower-3.800 support during early weakness on Monday, the November 14 natural gas contract reversed back higher into the close gaining .057 to settle at 3.916.
Yesterday's rally lifted the November contract back toward the middle of the recent sideways trading range that has now entered into a 13th week.
The 10 day moving average at 3.925 held as resistance near Monday's high and is the first area of resistance today followed by the 40 day average at 3.970. A breakout above these two averages would turn the near term trend back up with the next longer term resistance being the 4.163 and 4.184 weekly highs posted over the past few weeks. A rally above 4.150-4.200 resistance is needed to turn the longer term trend back higher.
The 3.786 low set in July extending up to the lower-3.800 level which has held as support several times over the past 3 months remains primary support in upcoming trade. A drop under 3.786 could see trade back toward the 3.500-3.550 area before a final low is set in the market.
Once the market does bottom, a seasonal rally back higher into the early months of 2015 is expected.
Technical Indicators: Moving Average Alignment - Bearish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment