Technical forecast for Natural Gas

nat_gas

Natural Gas held strong Fibonacci resistance at 3.439 which was our a selling opportunity. We predicted an end the correction & a turn lower. Exactly as expected we tested support at 3.362 & saw a bounce from here as predicted. However we could continue lower today to good support at 3.330/317. Expect a low for the day so exit shorts & try longs but we need stops below 3.245.

If we hold 3.362/360 again today look for a move towards 3.426/434 & a second selling opportunity. Exit longs & try shorts with stops above 3.465. A break higher should then signal further gains with a gap to fill at 3.548. We should struggle here as we start to look overbought on the daily chart at this stage.

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