natural gas

natural gas

Thursday, September 10, 2015

Natural Gas Corner - Technical Update - Volatility Should Increase Today




The October 15 natural gas contract turned back lower on Wednesday from 3-week high resistance reached the previous session at the lower-2.700 level.

As resistance held again at the 2.725 weekly high, sellers came back in dropping the October contract back toward the lower end of the past 3-week range bottoming out at a 2.641 low.

The October contract settled Wednesday’s session at 2.651, losing .059, but has since moved back higher in today’s early trade toward the middle of the recent trading range.

The primary trend remains sideways to down with the 2.633 contract low being the first area of support followed by weekly chart support at 2.550-2.560 and 2.440-2.450.  Longer term support is between 2.230-2.250.

2.725-2.735 which has been the top end of the past 3 week trading range is the first area of resistance followed by the 40 day moving average currently at 2.780.

Volatility may increase today following release of the EIA weekly storage report.

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

No comments:

Post a Comment