Natural gas prices closed down for a third consecutive week in last week’s trade with the spot November 14 contract falling by .143 or 3.8% to settle Friday at 3.623.
The November contract rallied back toward unchanged in late trade on Friday after setting a new contract low of 3.558 in earlier in the day. This low extending down to 3.545 is the first area of support today followed by 3.490-3.500.
Longer term support is the November 2013 weekly low of 3.379. It was from the November 2013 low that the winter 13-14 rally began.
There is still no sign of the market bottoming as sellers have come back in during early trade today. Once the market does bottom, it should be a V reversal back higher.
A close back above 10 day moving average resistance currently at 3.705 is needed to turn the near term trend back higher.
Hedge funds continue to liquidate existing long positions as the market sinks to new lows for the year. The speculative long position (futures only) in natural gas fell by 11,432 contracts last week to 150,432 according the Commitment of Trader’s report released on Friday.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment