Natural Gas Corner - Technical Update - Bearish Triangle Pattern Triggered On Thursday

The December 15 natural gas contract broke out under 2.320 trend line support in mid-day trade on Thursday which has triggered a bearish triangle pattern.

The initial objective for the triangle pattern for the December contract to trade down to the 2.234 point 1 low has already been met.  This turns 2.100 into the final downside objective for the triangle.

2.100 is not only the downside measuring objective for the triangle but also bottom of the open gap area on the daily continuation chart.  If 2.100 support is reached and broken, the 1.948 low set by the November 15 contract will become the next longer term support level.

Former triangle trend line support at the lower-2.300 level now becomes primary resistance.  A close back above this former support will  negate the bearish triangle pattern turning  the near term trend back higher.

Technical Indicators:  Moving Average Alignment – Bearish

                                         Long Term Trend Following Index – Bearish

                                         Short Term Trend Following Index - Bullish