The natural gas market remains under selling pressure
following last week’s bearish reversal but has found good buying interest the
last 2 days at the lower-2.700 level.
In Monday’s trade, the July 15 contract gapped lower on the
open and remained weak into the session’s close settling at 2.733, down .083
(2.9%).
The market is currently up this morning as the July contract
trades into the gap created on Monday’s open between 2.750-2.810. Once
this gap is closed, the market will likely turn back lower.
The 2.713 overnight low extending down to 2.700 is the
first area of support. A close under 2.700 will turn the
2.540-2.556 weekly lows into the next longer term support levels. If
weekly low support is broken, 2.443 will become the next downside support.
The 10 and 40 day moving averages between 2.815-2.825 will
remain primary resistance in upcoming trade with longer term resistance
at the lower-2.9000 level.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – Bearish
Short
Term Trend Following Index - Bearish
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