natural gas

natural gas

Friday, September 18, 2015

Natural Gas Corner - Technical Update - New Contract Low Set On Thursday




The October 15 natural gas contract traded down to a  new contract low at 2.603 on Thursday following release of the EIA weekly storage report settling the session at 2.652, down 8 ticks.

The trend remains sideways to down with yesterday’s 2.603 low being the first area of support followed by weekly chart support at 2.550-2.560 and 2.440-2.450.

The 10 day moving average at 2.680 is the first area of resistance today followed by the 2.794 high set earlier this week.  Longer term resistance is the 200 day moving average currently at 2.915.

The triangle pattern initiated on the weekly chart 4 weeks ago remains  intact with this week’s rally holding under lower trend line resistance.  The  initial downside measuring objective for the triangle is for trade down to the point 1 triangle low of 2.443.  

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

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