Natural gas prices dipped back lower during Monday’s
session. But the spot December 15 contract held above 2.188 contract low
support for a second day settling at 2.256, down .065 (2.8%).
The primary trend remains down with last week’s 2.188
contract low being the first area of support. Following support is the
bottom of an open gap area at the 2.105-2.115 level on the continuation chart
created last week during expiration of the November 15 contract.
Longer term support is the 1.948 low also set by the
November 15 contract which held above the previous 3-year low of 1.902 set in
April 2012.
There is a good chance that last week’s 1.948 low will end
up being a long term low for the natural gas market. However, if
support is broken, monthly lows at 1.850 and 1.760 from 2002 will become the
next downside support levels.
The 10 day moving average at 2.380 is longer term
resistance. A close back above the 10 day average could be an early
indication a market low has been set.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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