The October 15 natural gas contract has entered into a third
week of range bound trade chopping between 2.633 contract low support and
resistance at the lower-2.700 level.
The contract rallied back toward the upper end of this range
in Tuesday’s session topping out at a 2.722 high and settling at 2.710, up
.055.
With resistance holding, the market should sell back off
with last week’s 2.633 contract low being primary support. A breakout
under 2.633 will turn 2.560-2.570 and 2.430-2.440 into the next downside
support levels.
2.725-2.735 is primary resistance which if broken will turn
the 40 day moving average at 2.800 into the next upside resistance.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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