Another choppy, directionless day in the natural gas market on Thursday.
The day began with prices weaker following Wednesday’s sell off with the spot November 14 contract bottoming out at a 3.815 morning low.
As lower-3.800 support held for a fourth time, the market reversed back higher after release of the weekly storage report rallying up to a 3.941 mid-day high.
But the gains didn’t last as the November contract trended back lower into the close settling the day at 3.845, down .010.
The market remains in a 12-week sideways range with the November contract currently trading near the lower end of this range. A breakout under 3.786/lower-3.800 support would turn 3.720-3.730 and the 3.658 contract low into the next downside support areas for a possible seasonal low.
Upside resistance for today begins at 3.970 where the 10 and 40 day moving averages have converged. Longer term resistance levels are the 4.163-4.184 weekly high posted over the past 5 weeks. A breakout above these highs is needed to turn the longer term trend back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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