The natural gas market lost nearly 5% in Thursday as the spot July 15 contract closed under 40 day moving average support which turns the market trend back down.
Prior the recent selling, the July contract had gained 24% from the late-April 2.540 contract low up to last week's 3.150 high. But over the past 6 sessions, nearly 75% of those gains have now been erased.
The July contract closed Thursday at 2.706, down .141 for the day. Selling has continued overnight dropping the July contract under Thursday's 2.700 low as support which turns 2.580-2.590 into the next downside support level.
The 2.722 overnight high is the first area of resistance today followed by the 40 day moving average currently at 2.790. As long as the July contract trades under the 40 day average, the trend will remain down.
Current weakness may or may not lead to a new contract low. If the 2.540 contract low set in April is not broken as support on this downtrend, it could be an important low for the market.
Technical Indicators: Moving Average Alignment - Neutral-Bearish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment