The January 15 natural gas contract may be on the verge of pushing down to a new 2014 low after failing again on Thursday to clear resistance at the lower-3.800 level.
The natural gas market was higher in early trade on Thursday but sellers came in late dropping the January contract to a 3.642 daily settle, down .060.
3.541-3.585 remains primary support today with a drop under 3.541 turning 3.380-3.340 into the next downside support level.
The 10 day moving average at 3.670 is the first area of resistance followed by 3.800-3.820. Longer term resistance is the 3.936 weekly high posted on Monday.
Bottom line - Rallies continue to be sold as the market heads into a holiday weekend - Bearish.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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