natural gas

natural gas

Wednesday, November 18, 2015

Natural Gas Corner - Technical Update - Bulls Claw Back In Tuesday's Session




After trading .100 lower in yesterday’s morning session, the December 15 natural gas contract reversed back higher into the close finishing the day at 2.371, down .014.

A third day settle on Tuesday above 10 day moving average support keeps the near term trend bullish with 2.390-2.400 again being the first level of resistance followed by Monday’s 2.460 high.

Longer term resistance is the 40 day moving average currently at 2.525.  A breakout above the 40 day average would turn the longer term trend back up.

The 10 day moving average is the first area of  support today at 2.340 with longer term support at the 2.188 and 2.234 weekly lows.  If 2.188 contract low support is broken, 2.105-2.115 will become the next downside support.  Longer term support is the 1.948 weekly low set late-October.

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

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