The October 15 natural gas contract traded down to a new
contract low on Thursday at 2.521 following release of the weekly EIA storage
report.
Weakness was short-lived as buyers soon came in rallying the
contract to a higher close on the day settling at 2.591, up .022.
A potentially bullish Japanese candlestick called a “hammer”
was posted on Thursday but needs to be confirmed with a higher close
today. If the market does close higher today, a short and possibly
long low could be set in the market.
The 2.604 weekly high is the first area of resistance
followed by the 10 day moving average currently at 2.625.
Bottom line – Another key technical test for the natural gas
market following yesterday’s bullish reversal.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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