natural gas

natural gas

Wednesday, October 21, 2015

Natural Gas Corner - Technical Update - 3-Year Support Being Tested In Today's Early Trade




Natural gas prices rose for a second day on Tuesday but the November 15 contract was unable to clear 10 day moving average resistance.  With resistance holding, the near term trend remains sideways to down for the market. 

After settling yesterday’s session at 2.476, up .034, the November 15 contract has since sold back off in today’s early trade falling back toward 2.403 weekly low support.

The 2.403 weekly low extending down to 2.385 is primary support.  If  support is broken, 2.230-2.250 will turn into the next longer term support.

The 10 day moving average at 2.480 is the first area of resistance followed by last week’s 2.578 high.  A breakout above last week’s high and the 40 day moving average currently at 2.625 will turn the longer term trend back up.

The bullish double bottom reversal will remain viable if 2.403-2.410 support can hold today.

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

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