For a second Monday in a row, the May 15 natural gas contract has gapped lower in the overnight session. Today’s gap down has dropped the May contract to a new contract and 2015 spot low at 2.453 in early trade.
In last week’s session, the May contract gapped lower on Monday, rallied back higher to close the gap by Wednesday and then sold off into Friday’s close. For the week, the May contract lost .103 (3.9%) settling Friday at 2.531.
The overnight gap lower keeps the primary market trend down with 2.390-2.400 being the next downside support under the current 2.453 low.
The open gap area between 2.489-2.518 is the first area of resistance today followed by the 10 day moving average at 2.570.
The overnight gap looks like a breakaway gap which likely will not be closed. The May contract expires on tomorrow’s close.
Funds lightly liquidated existing long positions in the natural gas market last week according to Friday’s Commitment of Trader’s report. Funds as of last Tuesday’s close were long 96,163 contracts, down 1,515 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment