December natural gas futures are selling off hard for the sixth session in a row. The intense selling pressure started with a closing price reversal top at $3.652 on October 14. It accelerated to the downside after the market crossed to the bearish side of the 50-day moving average at $3.474 last Friday.

The main trend is also down according to the daily swing chart. It was reaffirmed earlier today when sellers took out the swing bottom at $3.234. The nearest swing tops are $3.652 and $3.709. The nearest downside target is $2.896.

What to Watch

For November natural gas futures, my bias remains to the downside. It’s being supported by the breakdown under the 50-day moving average and the downtrend on the main swing chart. Counting the October 14 main top at $3.334, the market has been down six-out-of-seven sessions. This means that on Thursday, it will be in the window of time for a closing price reversal bottom. This formation and a subsequent confirmation could soften my bearish outlook.

For December natural gas futures, the breakdown under the 50-day moving average and the breakdown under the swing bottom at $3.234 are providing the best support for my downside bias. Due to the current prolonged break in terms of price and time, on Thursday we will enter the window of time for a closing price reversal bottom. If formed and confirmed, we could see a strong counter-trend rally. This would weaken my outlook slightly.

More Information in our Economic Calendar.