natural gas

natural gas

Friday, December 11, 2015

Natural Gas Corner - Technical Update - 2.000 Support Broken Overnight




The January 16 natural gas contract remains in a very bearish downtrend trading under the 2.000 level in the overnight session.

The January contract  initially traded higher on Thursday ahead of the EIA weekly storage report but was sold back lower toward the end of the session closing the day at 2.015, down .047 (2.3%).

The next key support is the 1.948 weekly low set in late-October followed by the 1.902 low from April 2012.  If these two lows are broken as support, 1.860 and 1.750-1.760 will become the next downside support levels.

2.000-2.010 is the first area of resistance followed by the 10 day moving average currently at 2.120.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish

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