The January 16 natural gas contract has closed lower 8 days
in a row falling on Wednesday to a new 14-year low at the 1.775 level.
Short-covering ahead of this morning’s EIA weekly storage
report has lifted the market higher in today’s early trade.
1.850-1.860 is the first resistance level for the January
contract followed by 1.900-1.920. Longer
term resistance is the 10 day moving average currently at 1.970. A rally back toward the 10 day moving average
will likely be heavily sold, at least of the first test as resistance.
The 1.775 contract low extending down to 1.760 which is a
monthly low from September 2001 is the first area of support followed by 1.610,
a monthly low from August 1998.
Technical Indicators:
Moving Average Alignment – Bearish
Long
Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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