The January 15 natural gas contract begin last week’s session higher by nearly .140 topping out at a 3.936 high on Monday.
But by Friday’s close, the contract had lost .331 or 8.7% settling the week at a new 2014 low of 3.464.
Selling on Friday was heavily following an early morning breakout below 3.541-3.585 weekly low support. By falling under this support, the primary trend remains down.
The market has continued lower overnight falling under 3.380-3.400 weekly low support. This turns the 3.129 weekly low from August 2013 into the next primary support under the current 3.255 overnight low.
The open gap created overnight between 3.351-3.444 is the first area of resistance today followed by former weekly low support between 3.541-3.585.
Friday’s Commitment of Trader’s report showed the funds long 143,838 contracts, up 9,160 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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