The bearish triangle pattern on the weekly chart triggered 4 weeks ago remains viable although the market has been trending in a sideways range.
This triangle pattern was initiated in early-August with the
drop under lower trend line support between 2.740-2.750. Over the
followed 3 weeks, the spot October contract has been trading in a
sideways range between 2.624 weekly low support and resistance at the
lower-2.700 level.
The initial downside objective for the triangle will be for
the spot natural gas contract to trade back down to the 2.443 May low. If
this low is broken as support, 2.230-2.250 will become the next longer term
support.
A rally back above upper triangle resistance currently
between 2.880-2.900 will invalidate the triangle turning the near term trend
back up.
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