Friday 11 June 2010
When a market builds a sideways base, breaks out of it, then retests the
breakout, it is one of the “safest” kind of a position to take. Natural Gas
has been in a sideways base from which a strong move up should emerge.
Once price breaks out of the base, in this case to the upside, it is a show
of strength. At some point, the breakout wil be retested, and it is on the
retest that a position can be taken with relatively small risk. No trade is
ever a guarantee, but some do carry a higher probability degree of a
successful outcome.
We recommended long positions this morning at 4.820. The objective is
the 5.250 area, and that will be refined if/as price moves in that direction.
