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Monday, October 6, 2014
Natural Gas Weekly Chart Update - Trend Line Resistance Holds For A Second Time Last Week
For a second time last week, former trend line support on the natural gas weekly chart held as resistance.
The weekly natural gas chart shows the trend line in red that was broken as support in July. Over the following 11 weeks, the market has been consolidating below this resistance which at the 4.150-4.200 area.
A rally last week by the spot November 14 contract reached a 4.184 high on Wednesday. But as resistance held again, the trend turned back lower.
Key support to watch is the 3.724 weekly low set the first week of August. A drop under this low would keep the primary market trend down with possibly leading to a retest of the 3.379 low from November 2013.
A rally and close back over former trend line support near 4.200 is needed to turn the longer term trend back up.
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