The November 14 natural gas contract traded down to a new 2014 low in yesterday’s trade falling under the 3.786 low set in July.
A late day rally moved the November contract up from the 3.744 intraday low to settle the day at 3.796, down 4 ticks.
A drop to a new low on Thursday is a bearish signal likely indicating another leg down in the market before a final seasonal low is in place.
Thursday’s 3.744 low is the first area of support today followed closely behind by 3.724 weekly low support. The next area of support is the 3.658 contract low from last November.
This should be the final sell off ahead of the expected winter rally. A breakout above weekly highs at 4.163-4.184 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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