The new front month November 15 natural gas contract started
Wednesday’s session where the now expired October 15 contract left off, in a
downward spiral.
The November contract was heavily sold for a second day in
yesterday’s session losing .062 (2.4%) to settle at 2.524.
A new contract low was set both yesterday as well as in the
overnight session as selling has continued dropping the November contract to a
2.500 overnight low.
The next downside objective now becomes the 2015 spot
contract low at 2.443 set last May. This low is also the downside
objective for the bearish triangle pattern triggered on the weekly chart
triggered 5 weeks ago.
Former support at 2.521 now becomes the first area of
resistance with longer term resistance at the 10 day moving average currently at
2.620.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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