Natural Gas Technical Update - New Contract Low Set In Overnight Trade

The November 14 natural gas contract has fallen to a new contract low at 3.541 in the overnight session.

The overnight selling following yesterday’s sell off during which the November contract lost .062 (1.7%) to settle at 3.561.

The primary trend remains down with the current overnight low of 3.541 being the first area of support followed by 3.490-3.500.  Longer term support is the 3.379 weekly low set in November 2013.

Upside resistance is the 3.644 weekly high followed closely behind by the 10 day moving average at 3.675.  A rally and close back above the 10 day average could be an early indication of at least a near term low being set in the market.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish