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Natural Gas Technical Analysis October 12, 2011

By:
Christopher Lewis
Updated: Jan 1, 2011, 00:00 UTC

Natural gas had a second bullish day in a row on Tuesday, something it hasn’t done in quite some time. However, there is simply far too much natural gas

Natural Gas Technical Analysis October 12, 2011

Natural gas had a second bullish day in a row on Tuesday, something it hasn’t done in quite some time. However, there is simply far too much natural gas out there for any rally to sustain itself, and the bounces have continued to prove themselves to be selling opportunities. We continue to think that it will stay that way.

The market does look like it could run a bit at this point, but the easiest trade is going to be to let this thing pop – and then sell it. We have a keen interest in selling at the $3.75 level, as we see it as potential resistance in this market. We will not buy, it simply is too bearish at this point, and the recent action has the feel of either bottom-feeding, or short covering. Neither of those can last for too long.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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