The November 15 natural gas contract has been in a steep
decline over the past three sessions falling to yet another 2015 spot
contract low in the overnight session.
From the 2.720 high set on Monday, the November contract has
collapsed trading down to a 2.403 overnight low, down .317 or 11.6% from the
weekly high.
Recent selling is the type of capitulation price action seen
near market lows. Current weakness should be the final leg down before a
post-summer seasonal low is set in the market.
The 2.403 overnight low is the first area of support today
with longer term support between 2.230-2.250.
Longer term resistance is the 10 day moving average
currently at 2.590. A close back above the 10 day average could be an early
signal the market is bottoming.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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