By FXEmpire.com
The natural gas markets fell for much of the session on Thursday, but managed to pop back up to form a hammer shaped candle. This candle will be thought of as a doji by us, as break of the top would be a buy signal, and a break of the bottom would turn it into a “hanging man” – one of the more bearish signals you can see.
The buying of this contract doesn’t actually interest us though, as the demand is nowhere near enough to have us bullish. In fact, we see the $2.80 and more specifically the $3 level as massive resistance. Weak price action at either one of those areas would have us selling this market again, and aggressively as well. As for buying, we will be convinced on a close above the $3 level. The build numbers for the day were “less bad than originally anticipated”. This is nothing to get bullish about.
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Originally posted here
