After spiking down to a new contract low at 2.014 in
Tuesday’s early trade, the January 16 natural gas contract rallied back higher
into the close settling at 2.070, up 3 ticks.
A potentially bullish hammer Japanese candlestick formed on
yesterday’s bar but will need to be confirmed with higher trade today.
Yesterday’s low was technically important as it held above
the 1.948 spot contract low set in October. If this support continues to
hold, a long term low could be set in the natural gas market.
The 10 day moving average at 2.170 will be key technical
resistance to watch as a close above this average would be further confirmation
that a near and possibly long term low has been posted.
If 1.902-1.948 weekly low support is broken, the trend will
remain down with 1.860 and 1.750-1.760 then becoming the next downside support
levels.
Technical Indicators: Moving Average Alignment –
Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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