December Natural gas contract has been in a relatively tight 3.690 to 3,830 balance bracket over the last 4 days. Additionally, Mondays range is almost the exact same range as Fridays. Last week, Natural gas stayed in a tight 6 day range before a 2 day upside breakout from that balance. That breakout left a 5.596 to 3.651 gap below (visible on the chart).
BE READY FOR A BREAKOUT
The market may remain within this balance bracket for several more days. However, when a volatile market such as natural gas is contained within a tight balance for several days, a significant move usually follows the break from balance.
UPSIDE
If the market gains acceptance above the 3.830 four day balance high, it may test the 3.970 previous baance bracket high
DOWNSIDE
If the market gains acceptance below the 3.690 four day balance low, it may test the 3.651 gap high. Acceptance below 3.651 and the market may attempt to fill the gap down to 3.596
= = =
