TECHNICALS

TECHNICALS FOR OCTOBER 7

MCX NATURAL GAS OCTOBER

SHORT TERM TREND : BEARISH

LONG TERM TREND : BEARISH

SUPPORTS : S1 331, S2 327

RESISTANCES : R1 335, R2 338

SHORT AT RESISTANCES.

Natural Gas Falls on Commodity Collapse, Adequate Inventories

Natural gas in New York fell for a third day to its lowest

price in almost a year as investors fled commodities on

concern a widening financial crisis will further slow the

economy, cutting energy demand.

Natural gas for November delivery fell 52.3 cents, or 7.1

percent, the biggest decline in a month, to settle at $6.835

per million British thermal units at 2:56 p.m. on the New

York Mercantile Exchange. Gas was last below $7 per

million Btu on Dec. 27 and hasn't been this low since

Oct. 23, 2007. The futures have shed 50 percent since

reaching a 30-month closing high of $13.577 per

million Btu on July 3.

Other energy futures, including crude oil and heating oil,

tumbled. Crude fell as the German government pledged

$68 billion to bail out Hypo Real Estate Holding AG,

suggesting a broader crisis might cripple world markets.

Oil for November delivery fell $6.07, or 6.5 percent, to

$87.81 a barrel. Earlier it declined to $87.80, the lowest

since Feb. 7.

Inventories of natural gas gained 87 billion cubic feet in the

week ended Sept. 26 to 3.11 trillion cubic feet, the Energy

Department said Oct. 2. Analysts had forecast a 73 billion-

cubic-foot advance.

In addition to higher storage, natural gas output is forecast to

expand 8 percent in 2008 from a year earlier, boosting supplies,

according to the Energy Department.