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Natural Gas had a very volatile day today as we went down and hit our selling target, and then bounced back and closed the day slightly up. The thinking is that liquid natural gas is going to be shipped to Japan for a temporary energy solution. If there is any news announcement of this – expect a big rally in this commodity.
However, you must remember that we are still in a long-term bearish market, and the Japanese use of LNG is unlikely to foster any longer-term results as far as market support. In fact, this could spark a rally that will eventually give us a great selling opportunity.
For the time being, this market will more than likely go sideways. Today’s candle was very bullish – but it has a lot to overcome in order for this to be a trend change in the long-term.
More March 16, 2011 Analysis:
