The May 15 natural gas contract was heavily sold in last week’s trade after stalling under key resistance at the lower-2.700 level on Monday.
By holding under this resistance, the bearish triangle pattern initiated two weeks ago remains intact.
After losing .202 or 7.4% in last week’s trade settling Friday at 2.511, the May contract has since traded down to a 2.475 overnight low. This low is the first area of support today with longer term support from the weekly chart is at 2.395-2.400 and 2.230.
2.550-2.560 is the first area of resistance today followed by the 10 day moving average at 2.610. As long as the May contract trades under the 10 day average, the primary trend will remain down.
Friday’s Commitment of Trader’s report showed the fund long position in the natural gas market at 108,149 contracts, up 2,749 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Index Following - Bearish
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