The natural gas market has closed down three consecutive weeks losing .594 or nearly 19% from the early-May price high.
The July 15 contract fell by an additional .052 in last week's trade settling Friday at 2.590.
While the market closed lower last week, it was technically important as the July contract's 2.559 low set last Thursday held above the 2.540 contract low set in April. The inability to push down to a new contract low could be the beginning of a "higher low" reversal back up.
The first area of resistance today is the 10 day moving average at 2.690. A daily close back above the 10 day average would turn the near term trend back up with the next area of resistance being the 40 day moving average currently at 2.780. A close back above the 10 and 40 day averages would turn the longer term trend back up.
2.540-2.559 remains primary support for the July contract. A drop under 2.540 would turn the 2.443 low from the weekly chart into the next downside support.
The fund long position in the natural gas market plunged last week after increasing by 152% over the previous three weeks. Friday's Commitment of Trader's report showed the funds long 114,285 natural gas contracts, down 47,479 from the previous week.
Technical Indicators: Moving Average Alignment - Bearish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bearish
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