The natural gas market has been heavily sold over the past 2 weeks as the spot July 15 contract lost 9.5% in last week's trade alone settling Friday at 2.642.
The July contract has now fallen by .547 or 17.3% from the 3.150 high set two weeks ago down to the current 2.603 overnight low.
The primary trend turned back lower last week following the break under 40 day moving average support which now becomes primary resistance at 2.790. As long as the July contract trades under the 40 day average, the trend will remain sideways to lower.
The 2.540 contract low is the next downside support for the July contract followed by weekly low support at 2.443. Longer term support is between 2.230-2.250.
The fund net long position in the natural gas market has surged by 152% over the past 3 weeks as the market craters toward a 4-year price low. Friday's Commitment of Trader's report showed the funds long 161,763 contracts, up 36,008 from the previous week.
Technical Indicators: Moving Average Alignment - Neutral-Bearish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bearish
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