The January 15 natural gas contract rallied up to a 4.529 high following release of the weekly storage report on Wednesday.
But the buying was short-lived as the market tipped back lower into the close with the January contract settling at 4.355, down .048.
Daily close below the 10 day average on Wednesday turns the near term trend back down. The 10 day average is the first area of resistance today at 4.380 followed by the 200 day average at 4.450.
Longer term “breakout” resistance levels are the 4.633 and 4.689 weekly highs set over the past 3 weeks. A rally above these highs is needed to turn the longer term market trend back up.
Monday’s 4.155 low is the first area of support today followed closely behind by the 40 day moving average at 4.135. Longer term support is the 4.044 low set two weeks ago.
There should be good buying interest at the lower-4.000 level similar to past sell offs in the market.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment