Natural Gas Corner - Technical Update - Weekly Low Support Being Tested In Monday's Early Trade

The August 15 natural gas contact has been stuck in a sideways range for the past 11 days. 

After topping  out at a 2.885 high last week, the contract lost ground toward the end of the week settling at 2.761 last Friday during the computer traded holiday session.  For the week, the August contract closed nearly where it began losing just  9 ticks.

For the past 11 sessions, the August contract has been trading between 2.730-2.740 as support and the 2.870-2.885 area as resistance.  Selling has come into the market in Monday’s early trade dropping the August contract back toward 3.730-3.740 support.

If support is broken, the 2.569-2.588 weekly lows from April and June will become the next downside objective.  A breakout under weekly low support would be a very bearish technical event turning 2.443 into the next downside support.

2.870-2.885 is primary resistance with a breakout above this area needed to turn the near term trend back up.

The  Commitment of Trader’s report will  be released today due to the 4^th of July holiday.

Technical Indicators:  Moving Average Alignment  - Bearish

                                         Long Term Trend Following Index – Bullish
                                         Short Term Trend Following Index – Bearish (turned lower on Friday)