Technical forecast for Natural Gas

Natural Gas resistance at 4.011/034 did hold the bounce yesterday as predicted, where we suggested exiting longs & trying shorts with stops above Friday’s high of 4.064. This trade has worked perfectly with a high at 4.040. This resistance applies again today so we can try the same trade but a break higher would target resistance at 4.083.

We have fallen back to support at 3.970/940 which is also holding to offer a nice profit on our shorts. We look oversold in the short term at this stage so a bounce from here is possible as stated yesterday. However a break lower cannot be ruled out with the daily chart still negative & targets May lows at 3.897/883. A break lower would then see 3.861 tested.

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