natural gas

natural gas

Tuesday, June 23, 2015

Natural Gas Corner - Technical Update - New Price Lows For 2015 Expected




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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