The natural gas market remains in a bearish downtrend with
the new front month January 16 contract falling to a new contract low at 2.105
in the overnight session.
The January contract traded generally lower during last
week’s 5 days of trade closing Friday at 2.186, down .026 or 1.2% for the week.
The 2.105 overnight low is the first area of support today
for the January contract followed by 2.051, a low set by the December 15
contract. Longer term support is the current 2015 spot contract low of
1.948 set the last week of October.
The 10 day moving average at 2.230 is primary resistance as
a close back above this average could be an early indication of a trend turn
back higher.
The fund long position in the natural gas market plummeted
by 56% according to the Commitment of Trader’s report released on Friday.
The futures only long position held by the funds fell by 27,956 contracts to a
net long position of 35,459 contracts as of last Tuesday’s close.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – BearishShort Term Trend Following Index - Bearish
No comments:
Post a Comment