The natural gas market remains technically weak following another failed breakout attempt in last week’s trade.
The April 14 contract rallied up to a 3.864 weekly high last Thursday, the second consecutive week the contract has stalled out at this level.
As resistance held, the market turned back lower briefly dropping back under the 2.700 level before settling Friday’s session at 2.727, down .112 (3.9%).
Over the past two weeks, the April contract has traded in a .200-.220 range between the 2.641 weekly low and the 2.864 weekly high. The breakout from this trading range will have a measuring objective equal to the price difference between the high and low.
Therefore, a downside breakout below 2.640-2.650 support would turn the 2.430-2.450 area into the downside measuring objective. If the breakout instead comes to the upside above 2.864 resistance, 3.070-3.100 would then become the upside objective.
Given the trend for the market, the breakout should come to the downside under 2.640-2.650 support.
Funds added to their net long futures position in the natural gas market last week according to
Friday’s Commitment of Trader’s report. The position was estimated at 91,167 contracts, up 17,964 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment