Natural gas had a fairly bullish day on Wednesday as traders again tried to test the resistance formed a few weeks ago. The bulls find themselves stuck at that level, and a lot of questions are currently being asked in the pits.
The current range is between 2.85 and $4. This should continue to be the case until a major catalyst can be found. It should be noted that the market has been down for a very, very, very long time. As such, shorts are preferred. A nice short set up will most likely be found on the shorter time frames, which gives the added bonus of making for small stop losses.
Any longs will have to contend with not only the $3.95 mark, but also the $4 and $4.05 marks as well as the pressure downward has been relentless. Any breaks below the $3.85 mark would signal a resumption of the bearish market.
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