Nat Gas: Further falls expected

Natural Gas is one of the weakest energy commodities, according to Cornelius Luca, Global Chief Technical Analyst at Thomson Reuters.

Natural Gas fell to a 3 1/3 year low at the beginning of October and, although it is now trading off this low, it is still well below its 21-day and 10-day exponential moving average, and both the fast stochastics and MACD are bearish. As such, Luca suggests shorting natural gas (NGc1) while it remains below its 10-day exponential moving average.

Initial support is at 2.402, with further support at 2.318. Initial resistance is at 2.525 with further resistance at 2.572.

See chart.