The October 15 natural gas contract closed higher on Tuesday
but continues to bearishly trade under 10 day moving average resistance.
This keeps the near term trend sideways to lower.
In Tuesday’s session, the October contract held in another
narrow .052 daily range moving higher into the close to settle at 2.702, up
.013.
The trend remains weak with a breakout under 2.638-2.640
weekly low support needed to spur the next leg down in the market. If
support is broken, 2.440-2.450 and 2.230-2.250 will become the next longer term
support levels for the October contract.
The 10 day moving average at 2.700 is the first area of
resistance today followed by the 40 day average at 2.800.
If the market does fall to a new price low, it should be the
final sell off before a post-summer seasonal low is set.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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