natural gas

natural gas

Monday, November 24, 2014

Key Resistance Holds In Last Week's Natural Gas Trade


For a second time in the past 2 weeks, a rally by the December 14 natural gas contract has stalled at 4.450-4.500 resistance.

The contract has briefly moved above 4.500 topping out at a 4.544 high two weeks ago and a 4.532 high last week.  But the highest price level the December contract has closed at over the past 2 weeks was 4.489 last Thursday.

The inability to rally above resistance last week has led to a gap lower open in today’s trade as the market has fallen back toward the lower-4.000 level.

Selling two weeks ago in the December contract bottomed out at a 3.931 low before reversing back higher.   A drop back under the 4.000 level should find good buying interest as the trend for the market is now sideways to higher into the early months of 2015.

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