The natural gas monthly chart shows the new 3-year low set
last week at the 1.948 level by the now expired November 15 contract.
The new front month December 15 contract is currently
trading .300+ above last week’s low which should be retested as support in
upcoming trade.
Whether or not support can hold will be a key technical test
for the natural gas market. If the 1.948 support area can hold over
the next few weeks of trade, a long term low could be set in the natural gas
market.
If 1.902-1.948 support is broken, the 1.760 low from
September 2001 will become the next longer term support area.
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