The December 15 natural gas contract traded down to a 2.234
low on Thursday holding above the 2.188 contract low as support. The
inability for the contract to push down to a new low could be the beginning of
a short and possibly long term reversal back higher.
After settling yesterday’s session at 2.260, the December
contract has since moved back toward 10 day moving average resistance at 2.295
in today’s early trade.
Key resistance to watch is at the 2.390-2.400 level, the
area where last week’s rally attempt failed. A breakout above 2.390-2.400
resistance would turn the market trend back higher with the 40 day average
currently at 2.555 being the next longer term resistance.
Thursday’s 2.234 low is the first area of support followed
by the 2.188 contract low. If contract low support is broken, the
bottom of an open gap on the daily continuation chart between
2.105-2.115. Longer term support is the 2015 spot contract low at 1.948.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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