Natural Gas Forecast October 8, 2014, Technical Analysis

The natural gas markets initially gapped higher at the open on Tuesday, and then pulled back to look for support near the $3.85 level. It did in fact find it down there, and ended up forming a nice-looking hammer. We are in a very obvious consolidation area, and it towards the bottom of it while forming a hammer. Because of this, we feel that the next move is probably higher, but we would not expect this market to enter a longer-term uptrend, just simply continue to chop around in the general vicinity that we have been in, making holding above the $4.10 level a bit risky. Short-term traders will probably buying natural gas, but at the end of the day we think that’s all that this market is going to offer: short-term trading opportunities.