Natural Gas Corner - Technical Update - Lower-2.700 Support Holds For A Third Day

 

The July 15 natural gas contract on Tuesday rallied up to a 2.792 high coming within .020 of completely closing the upside gap created on Monday’s open.

As the gap was filled, the July contract turned back lower into the close settling at 2.726, down 7 ticks. 

The primary trend remains down with the lower-2.700 area now holding for a third time in today’s early trade.  A drop under 2.700 would turn the 2.540-2.556 weekly lows into the next downside support.  If weekly low support is broken, 2.443 will become the  next longer term support.

The 10 and 40 day moving averages which are now in a bearish alignment are the first two areas of resistance at 2.800 and 2.825, respectively.  Longer term resistance is the upper trend line currently at the lower-2.900 level.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bearish