natural gas

natural gas

Tuesday, September 1, 2015

Natural Gas Corner - Technical Update - Support Just Won't Be Broken




The October 15 natural gas contract fell back toward 2.641 weekly low support for a third time over the past week during Monday’s session.

With support holding again, the October contract moved back higher into the session’s close settling  down .026 at 2.689, but well above the 2.643 intraday low.

The trend remains sideways to lower with a breakout under 2.638-2.640 weekly low support needed to extend the downtrend.  If support is broken, 2.440-2.450 and 2.230-2.250 will become the next longer term support levels.

The 10 day moving average at 2.705 is the first area of resistance today followed by the 40 day average at 2.800. 

The bearish triangle on the weekly chart remains intact.  The point 1 low at 2.443 is the initial downside objective for the triangle.

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

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