natural gas

natural gas

Thursday, July 30, 2015

Natural Gas Corner - Technical Review - New Prices Lows Expected In Upcoming Trade




The new front month September 15 natural gas contract rallied higher on Wednesday during expiration of the August 15 contract closing up for a third consecutive day.  Gains for the session were .048 or 1.7% with the September contract settling at 2.864.

The market could continue higher near term possibly back toward last week’s 2.957 high.  The longer term trend for the market remains sideways to down with new lows expected in upcoming trade.

The 10 and 40 day moving averages between 2.820-2.840 are the first support levels today following by the 2.735 weekly low set on Monday.  Longer term support levels are the 2.590-2.600 weekly lows posted earlier this year.  A drop under weekly low support would turn 2.440-2.450 and 2.230-2.250 into the next longer term support levels.

The 2.957-2.988 weekly highs are primary resistance followed by the 200 day moving average  currently at 3.060.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish


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