Natural Gas Corner - Technical Update - Natural Gas Trading Under 2.000 For The First Time Since April 2012

Natural gas prices collapsed on Monday as the spot November 15 contract fell by .224 or 9.8% settling at 2.062, the lowest settle since April 2012.

The November contract gapped lower on Monday’s open and remained heavily sold throughout the day bottoming out at a 2.050 low.

Selling has continued in the overnight session dropping the spot contract under the 2.000 level. 

The next downside support now becomes the April 2012 low at 1.902.  If this support level is reached and broken, monthly lows from 2001 and 2002 at 1.850 and 1.760; respectively, will become the next downside support levels.

The 2.080 overnight high is the first area of resistance followed by the gap created on yesterday’s open between 2.238-2.275.  Longer term resistance is the 10 day moving average currently at 2.345.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bearish