Natural gas prices traded flat for a second day on Tuesday as the December 15 contract fell by 3 ticks settling at 2.253.
The inability to extend recent losses has brought in short-covering in today's early trade as the December contract moves toward the 2.336 weekly high set on Monday. This high coincides with the 10 day moving average currently at 2.345 and should be a strong resistance area if reached.
If 10 day moving average resistance holds, the December contract should sell back off in a retest of the 2.188 contract low set on Monday. A drop under contract low support would keep the longer term bearish downtrend intact with following support at the 1.948 low set by the expired November 15 contract last week.
A rally and close above 2.336-2.345 resistance would turn the near term trend back up with 2.370-2.380 being the next upside resistance followed by 2.410-2.420. It could also indicate a seasonal low has been set in the market.
Technical Indicators: Moving Average Alignment - Neutral-Bearish
Short Term Trend Following Index - Bearish
Long Term Trend Following Index - Bearish
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