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The natural gas markets fell during the session on Thursday as most commodities rose. It should be stated however that the $3.00 level looks supportive as we formed a hammer just above that level. Nonetheless, there is simply far too much noise until we get above the $3.30 level for us to be comfortable going long.
In fact, we would actually preferred to see the bottom of this hammer get broken and violated in order to have us selling this market as it is with the longer-term trend. This is probably more anti-Dollar business as the Federal Reserve laid on huge quantitative easing on Thursday. However, the only thing which really matters is of direction of price and right now it does look like it's trying to rise. As it is countertrend, we have no interest until we can be shown something special, like a move above $3.30.
Natural gas could be very volatile market; as such we still want to trade - but what have to look at longer-term and wider ranges as possibilities. Again, unless we get a break of the bottom of this hammer, we really don't see a trade as it will be simply far too difficult to keep climbing at this pace.