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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