Technical forecast for Natural Gas

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Natural Gas hit our next target of 4.230/250 where we advised to exit longs & try shorts. This worked perfectly as prices backed away to support at 4.163/133 & a low for the day was seen here exactly as predicted. We are moving back up towards 4.230/250 for another chance to exit longs & try shorts with stops above 4.275. We would look for a drift back again to support at 4.163/133 & a low for the day possible again. However we are very overbought now in the short term so a break lower is more likely today & could target 4.090/75. If we continue lower look for good support at 4.035/015 & a buying opportunity with stops below 4.000.

A break above 4.275 however keeps the upward momentum going for a test of 4.310/ 324. If attempting shorts here we need stops above 4.364.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More