The November Natural Gas contract has been in a 3.327 to 3.647 balance bracket over the last few weeks. Tuesdays range was within Mondays range, making it an INSIDE DAY. An INSIDE DAY is a form of balance. Many profitable trades begin with a break from balance.
BE READY FOR A BREAKOUT
One possibility is that the market remains within balance, rotating within Tuesdays range. However, we need to be prepared for the break from balance.
UPSIDE MOVE
If the market gains acceptance above Tuesdays 3.559 high, it may re-enter the Fri/Mon 2 day value range of 3.600 to 3.640.
DOWNSIDE MOVE
Mondays and Tuesdays lows are within ticks of each other, making 3.440 a support level reference. If the market gains acceptance below that 3.440 support level, the next downside reference is 3.401. If the market gains acceptance below that 3.401 reference, it may continue lower and test the 3.327 balance bracket low
