natural gas

natural gas

Friday, August 21, 2015

Natural Gas Corner - Technical Update - The Short Covering Rally Is Over




The September 15 natural gas contract spiked higher by .053 or nearly 2% in the minute following release of the EIA weekly storage report on Thursday.

After topping out at a 2.782 daily high, the contract pulled back into the close settling at 2.755, up .039.

Another short-covering rally lifted the market yesterday but the primary trend remains sideways to lower.

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.  If this support is broken, 2.440-2.450 and 2.230-2.250 will become the next downside price objectives.

The 10 day moving average held as resistance on Thursday and is the first level of resistance today at 2.780 followed by the 40 day average at 2.800.

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

No comments:

Post a Comment