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.
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