The natural gas market was heavily sold to begin the new
week of trade on Monday as the spot December 15 contract lost .071 (3%) to
settle at 2.300.
The near term trend is now down as the December contract
retests downside support levels. Monday’s 2.274 low is the first area of
support followed by the 2.188 contract low.
If contract low support is reached and 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 2015 spot contract
low of 1.948 set two weeks ago.
Last week’s 2.398 high is the first area of resistance today
followed by the open gap between 2.450-2.483. Longer term resistance is
the 40 day moving average currently at 2.600.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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