natural gas

natural gas

Thursday, October 1, 2015

Natural Gas Corner - Technical Update - Market In A Near Freefall




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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