By FX Empire.com
Natural gas had a strong week for the first time in ages. It is possible that the bottom is starting to be formed at this point, but the market will have to contend with the $3 level just above first. The candle was a bullish engulfing one, and as a result it technically is a buy signal if we break above it. However, with the significance of the large round number at $3, we are more comfortable to wait until that level gets closed above, perhaps on a weekly candle.
The trend is strongly to the downside, so we are much more comfortable selling if we get some kind of weak candle in the next week or two. However, until we get one of our signals – we are going to be flat in this market.
Natural Gas Forecast for the Week of January 30, 2012, Technical Analysis
Originally posted here
