After rallying up to a new 4-month price high of 4.544 in early trade on Monday, the December 14 natural gas contract fell under steady selling pressure into the session’s close.
The December contract closed lower on Monday for the first time in 10 sessions losing .142 to settle at 4.270. Selling has continued overnight dropping the contract back under 4.250-4.300 weekly chart support as it approaches 10 day moving average support at the 4.110 level today.
Longer term support is the 40 day moving average at 3.990 which is near the 62% retracement support at 3.970 of the past 2 week rally.
Current weakness is seen as a correction within a greater uptrend. Once a near term low forms in the market, a rally back higher should follow.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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