The December 15 natural gas contract held steady on Tuesday
following Monday’s heavy sell off gaining .020 to settle at 2.320.
The general trend at this point for the market remains
sideways to lower with a probable retest of the 2.188 contract low set two
weeks ago in upcoming trade.
If 2.188 support is broken, the bottom of the open gap area
on the daily continuation chart between 2.105-2.115 will become the next
downside support. Longer term support is the 1.948 low set by the now
expired November 15 contract.
The market has seen early buying today rallying up to a
2.350 overnight high although it has currently sold back off. The
overnight high if the first area of resistance for the December contract
followed by weekly high resistance at 2.390-2.400.
A breakout above the 2.390-2.400 area could lead to heavy
short covering and new technical buying. It would also be a bullish
technical signal for the market.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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