natural gas

natural gas

Tuesday, October 6, 2015

Natural Gas Corner - Technical Update - Market Low May Be Forming




After falling to a new contract and 3-year spot price low last Friday, the November 15 natural gas contract closed nearly unchanged on Monday holding above the 2.403 contract low as support.

The trend remains down although recent selling late week is the type of price action seen near market lows. 

The 2.491 weekly high is the first area of resistance with longer term resistance at the 10 day moving average currently at 2.550.  A close above the 10 day average could be an early indication the market is bottoming.

The 2.403 contract low extending down to a 2.385 weekly chart low is the first area of support with longer term support between 2.230-2.250.

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

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