Natural gas prices traded flat on Wednesday with the spot
September 15 contract holding under key resistance to settle at 2.716, up .012.
Yesterday’s 2.739 high for the September contract held below
weekly chart triangle resistance which was broken as support on Tuesday.
This triangle is a bearish continuation pattern which should lead to new price
lows in upcoming trade.
The 2.680 weekly low is the first area of support today
followed by 2.650-2.660. Longer term support levels are the 2.590-2.600
weekly lows set earlier this year. A drop under 2.590-2.600 weekly low
support would be a very bearish signal for the market turning 2.440-2.450 and
2.230-2.250 into the next longer term support levels.
Triangle trend line resistance at 2.720-2.740 remains
primary resistance today followed by the 10 and 40 day moving averages at
2.800-2.805.
Volatility could markedly increase following the release of
the EIA weekly storage report later this morning. The natural gas market
lost 5% after last week’s report. New price lows or another
short-covering rally? That question should be answered today.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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