NATGAS: Fall in China’s Manufacturing PMI Bearish for Natgas: Platts

• RES 4: 114-10   High Apr 7 (cont.)
• RES 3: 114-00   Round number resistance
• RES 2: 113-12/29 High Sep 18 / High Sep 11 and the bull trigger 
• RES 1: 112-22+/113-00 20-day EMA / High Sep 24 
• PRICE:‌‌ 112-16 @ 11:05 BST Oct 1
• SUP 1: 112-01   50.0% retracement of the Jul 15 - Sep 11 bull phase   
• SUP 2: 111-26   Low Aug 26
• SUP 3: 111-13+ Low Aug 18 and a key support  
• SUP 4: 111-01+ 76.4% retracement of the Jul 15 - Sep 11 bull phase  

A short-term bear cycle in Treasury futures remains in play. Recent weakness has resulted in a print below the 50-day EMA, currently at 112-10+. A clear break of this average would undermine a bull theme and signal scope for a deeper retracement. This would open 111-13+, the Aug 18 low and the next key support. On the upside, initial firm resistance to watch is unchanged, at 113-00, the Sep 24 high.

OI data suggests that net long setting dominated through the blue pack of the SOFR futures strip as contracts rallied on Tuesday, with only fairly limited rounds of net short cover seen.