The October 15 natural gas contract has been in an extended
downtrend after topping out at a 2.794 high last Tuesday.
From last Tuesday’s high, the October contract has fallen by
.244 or 8.7% down to Monday’s 2.550 low setting the day at 2.573.
Yesterday’s 2.550 low held above weekly low support at the
same level which has brought in lightly buying in today’s early trade.
Former daily low support at 2.602 is now the first area of
resistance today followed by 2.632. Longer term resistance is the 10 day
moving average currently at 2.660.
2.540-2.550 is the first area of support followed by the
current 2015 spot contract low of 2.443 set in early-May. 2.443 is also
the initial downside objective for the bearish triangle pattern on the weekly
chart. If 2.443 support is broken, 2.230-2.250 will become the next
longer term support.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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