An early rally attempt by the November 14 natural gas contract on Tuesday topped out at a 3.955 high, one cent below 40 day moving average resistance.
The early buying soon turned into selling which continued into the close dropping the November contract to a 3.816 daily settle, down .100 or 2.5%.
The trend remains sideways to lower although support at the lower-3.800 area has held again in the overnight session. A drop under this support followed by the 3.786 would a very bearish indicator for the market turning 3.720-3.730 and the 3.658 contract low from last November into the next downside support levels.
Moving average alignment is now bearish with the 10 day average at 3.895 being the first area of resistance followed by the 40 day average at 3.965. Longer term resistance levels are the 4.163 and 4.184 weekly highs. A breakout above weekly high resistance 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
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