The new front month January 16 natural gas contract has sold
down to a new 2015 and contract low in the overnight session at 2.223 keeping
the bearish technical downtrend intact.
The next downside support beneath the contract low comes
from the weekly chart at 2.051, a low set by the December 15 contract.
Longer term support is at 1.948, a weekly low set in late-October.
Near term, the market could continue lower but the
above-mentioned lows for the market could in fact be multi-year price lows.
The 2.347 weekly high is the first area of resistance
followed by the 10 day moving average currently at 2.400.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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