The proverbial rug has been pulled out from under the
natural gas market which has fallen to a new 14-year low in today’s early
trade.
The front month January 16 contract gapped lower on Monday’s
open trading under 1.948 weekly low support posted in late-October. For
the day, the January contract lost .096 (4.8%) to settle the session at
1.894.
The trend remains down with the 1.833 overnight low being
the first area of support today followed by weekly low support at 1.760
from September 2001. If 1.760 support is broken, a 1.610 monthly low from
August 1998 will become the next downside objective.
The open gap created on Monday between 1.923-1.959 is the
first area of resistance today followed by the 10 day moving average currently
at 2.050.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
No comments:
Post a Comment