Natural Gas Technical Analysis October 17, 2011
The natural gas markets rose during the Friday session, and on quite large volume. This was predicated on the weakening US Dollar, rather than anything fundamental that was obvious. The bounce was strong, and certainly would set up for a nice rally to sell from. One cannot help but notice that the $3.75 level seems to be acting rather resistive, and the trend is most certainly down at this point. Because of this, we feel that a sell position could be taken in this area. Quite frankly, one would have to believe that the total economic picture would have to have changed overnight to buy into this move. Also, there is that whole “There is enough natural gas in the Midwest to power the US for 300 years” thing too. We are still selling rallies.
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