By FXEmpire.com

The natural gas markets had another bullish day on Thursday as buyers stepped in to attempt a breakout at the three dollar level. This area of course has been in our sites for some time, and we think it is still resistive until we get to the $3.10 level. Once we manage a daily close above that level in this market, we would consider going long as there is a bit of an air pocket above it. This doesn’t necessarily mean that we want to hold onto the trade, rather than we simply are willing to buy for once. If we did do this, we would keep our stops fairly tight.

Alternately, we think that the market is still in consolidation, and any weakness at this point in time could be sold for a move back down to the $2.70 level. In fact, this is the more likely of scenarios as far as we can tell right now. However, we have to acknowledge the fact that pressure is building to the upside at this point.

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Originally posted here