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The natural gas markets shot straight up during the session on Tuesday, even though the market is extremely bearish. This may be more to do with the US dollar than anything in the markets. With this being said, as long as the dollar gets beat up, there will be somewhat of a natural bid in the commodities markets.
So while the natural gas markets look extraordinarily strong over the last two sessions suddenly, we are still overall bearish in this market. There is far too much natural gas out there in order to sustain any type of serious rally, and as such we are looking for weak candles to sell at this point. The three dollars level held as resistance by the end of this session, and as such it does suggest that perhaps this was more of a short covering rally than anything else. Looking for weak candles in the near-term is exactly what we're going to do in order to start selling again.