Technical forecast for Natural Gas

nat_gas2

Natural Gas tested good support at 3.412/410 for trying longs with stops below 3.380 & this trade worked perfectly as we bottomed at 3.388. However the outlook is turning more negative with the small double top so we need to take profit quickly on longs. Be ready to go with a break below 3.410 today for a move towards the next support at 3.360/355. We could see a short term bounce from here but on a break lower look for 3.315 & perhaps as far as 3.275/70 for a buying opportunity with stops below 3.255.

Exit longs up to 3.444 as this could hold the topside. We can then try shorts on a move towards 3.500 with stops above 3.520. We should then fill the gap at 3.548 for a selling opportunity today.

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