Technical Forecast for Natural Gas

Natural Gas resistance at 4.011/034 did hold the bounce yesterday as predicted, where we suggested exiting longs & trying shorts with stops above Friday’s high of 4.064. This trade has worked perfectly with a high at 4.040. This resistance applies again today so we can try the same trade but a break higher would target resistance at 4.083.

 

We have fallen back to support at 3.970/940 which is also holding to offer a nice profit on our shorts. We look oversold in the short term at this stage so a bounce from here is possible as stated yesterday. However a break lower cannot be ruled out with the daily chart still negative & targets May lows at 3.897/883. A break lower would then see 3.861 tested.