natural gas

natural gas

Thursday, October 22, 2015

Natural Gas Corner - Technical Update - New 3-Year Low Set On Wednesday




The November 15 natural gas contract broke out under 2.400 support on Wednesday falling to a new contract and 2015 spot low at 2.382.

The November contract finished yesterday’s session at 2.404, losing .072 or 2.9% on the day.

The trend remains down although the final level of support has held at the 2.382 low.  If this low is broken as support, 2.230-2.250 will become the next longer term support.

There is a small chance yesterday’s sell off to a new low was the final thrust down cleaning out all the sell stops under the market before reversing back higher.  A higher close today could be the beginning of a longer term trend back higher.

Today’s session will be another important technical test for the market after yesterday’s sell off particularly with the EIA weekly storage report due out later this morning.

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

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