The natural gas market remains in a very bearish downtrend which currently shows no signs of bottoming.
The November 14 contract has now closed lower 7 out of the past 8 sessions after breaking out from a 13-week sideways range last week. In yesterdays’ trade, the contract lost another .037 to settle at 3.622.
A new contract low of 3.564 has been set in the overnight session. This low extending down to a weekly chart low of 3.545 is the first area of support today followed by 3.490-3.500.
Longer term support is the 3.376 weekly low posted last November. It was from the November 2013 low that the winter 13-14 rally began.
Upside resistance for today begins at 3.610-3.620 followed by the 3.658 low set last November. Longer term resistance is the 10 day moving average currently at 3.735. As long as the November contract trades under the 10 day average, the near term trend will remain down.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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