The January 16 natural gas contract pushed down to a new
contract low at 2.175 in Monday’s early session but rallied back higher into
the close settling at 2.235, up .023.
The natural gas market also posted a potentially bullish
inside range reversal bar on the monthly chart which could be another sign of
the market bottoming.
At this point, however, the trend remains down with
yesterday’s 2.175 contract low being the first area of support today followed
by 2.051 which was a low set by the December 15 contract. Longer term
support is the 1.948 late-October low.
Monday’s 2.250 high is the first area of resistance followed
by the 10 day moving average currently at 2.335. A close back above the
10 day average could be an early indication of a trend reversal back higher.
The holiday-delayed Commitment of Trader’s report released
on Monday showed the fund long position in the market increasing by over
20%. The report estimated the fund long futures position as of last Tuesday’s
close at 63,414 contracts, up 10,843 contracts from the previous week.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index – Bearish
No comments:
Post a Comment