By FXEmpire.com
The natural gas markets had an interesting day on Monday, as it was initially a week market, only to be turned around and to form a hammer. This candle is very interesting to us, as it does suggest that we are going to continue much higher. The fact that the $3.00 level has held as support cannot be overlooked at this point, and as such we think that the next round is probably up.
However, it cannot be overlooked that a break of the bottom of the Monday hammer would be an extremely bearish sign known as the “hanging man” candle formation. If that turns out to be the case, this market should continue much lower. However, on a break of the session highs for the Monday trading day, it looks like this market could continue up to the $3.57 level and perhaps even as high as $4.00 before it’s all said and done.
Click here to read Natural Gas Technical Analysis.
Originally posted here
