natural gas

natural gas

Thursday, November 12, 2015

Natural Gas Corner - Technical Update - Key Retest Of Contract Low Support Expected




Natural gas prices continued lower on Wednesday as the December 15 contract closed back under 10 day moving average support.  Daily settlement for the contract came in at 2.263, down .057 or 2.4% for the session.

The near term trend is now bearish as the December contract retests 2.188 contract low support.  If this support is broken, the bottom of the open gap area on the daily continuation  chart at 2.105-2.115 will become the next downside support.  Longer term support is the 1.948 low set by the expired November 15  contract.

The 10 day moving average broken as support on Wednesday now becomes the first area of resistance today at 2.300 followed by 2.390-2.400.

2.390-2.400 is a key technical resistance level for the December contract.  A breakout above this area could indicate a market low has been set.

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

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