Natural Gas Forecast October 8, 2012, Technical Analysis

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The natural gas markets fell during most of the session on Friday, but bounced in order to form a candle the looks quite a bit like a hammer. The $3.38 level offers support, as it is part of the $4.00 support “zone.”

This market has broken out previously at this area, and as such this previous resistance should now start to look as very supportive going forward. In fact, a break of the candlestick top from the Thursday session is enough for us to go long, as it would show not only support holding at the $3.40 “zone”, but that the market has significantly broken through the top of the resistance on Thursday’s shooting star. This would be too strong signs a row, and enough for us to be long.

As for selling this market, if we can get below the $3.30 level we would consider it. After all, the weekly candle is a big massive shooting star, and this of course normally signifies that the sellers are starting to take over.

 

Natural Gas Forecast October 8, 2012, Technical Analysis

Natural Gas Forecast October 8, 2012, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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