An early rally on Wednesday by the January 16 natural gas contract reached a 2.118 morning high before turning back lower. Late selling dropped the contract back down to a 2.062 daily settle losing 8 ticks for the session.
The market remains weak but continues to hold over key
support which begins at the 2.014 contract low for the January contract set on
Tuesday and extends down to the 1.948 monthly low set in late-October.
Whether or not this support can hold will be the next
technical test for the market. If support does hold, a near and
possibly long term low could be set. But if support fails, the trend will
remain down with 1.860 and 1.750-1.760 then becoming the next downside support
levels.
The 10 day moving average at 2.150 today remains
primary resistance as a close above this average could indicate a bottom is in
place.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – BearishShort Term Trend Following Index - Bearish
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