Although the marketplace for natural gas is extremely bearish, the market did in fact manage to form a hammer on Tuesday to show some kind of support under the $3.50 level. We are currently very short-biased currently, and this candle will do little to change our minds. Rather, we think the candle simply shows that we will bounce back up to the highs of the recent consolidation in another attempt to start selling again. With this in mind, we don’t buy – we simply wait until there is resistance nearer to the $3.75 level from which to sell.
Natural Gas Forecast Dec. 7th, 2011, Technical Analysis
Originally posted here
