Natural Gas Technical Analysis October 18, 2011
Natural gas markets rose a bit during the Monday session, but then fell later in the session as the downtrend looks set to continue. The $3.75 level came into the picture as resistance, and held firm during the session. The market is decidedly bearish, and the days that this market pops like this tend to offer selling opportunities more than anything else. In fact, we have been recommending selling all rallies in the natural gas markets, and this market looks set to continue this pattern. The candle from the Monday session also shows indecision as it is a doji – a classic sign of real lack of conviction in the buying of this market.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.