By FXEmpire.com
The natural gas markets had a constructive day yet again on Tuesday, as we watch the market test the recent highs. Just above, the three dollar level looms and should provide fairly strong resistance. It is at that point that we will be willing to admit that the trend has changed, and that we would be comfortable buying this market. In the meantime however, we have to assume that the downward pressure is still strong. With this in mind, we will be looking for resistive candles such as shooting stars, bearish engulfing candles, or otherwise long red candles in the vicinity of $2.90, and going up to the $3.10 mark. With all this being said, we are cautiously bearish of this market still. There is the possibility however, that we are to simply setting up a nice consolidation area between $2.20, and the three dollar handle.
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Originally posted here
