By FXEmpire.com
The natural gas markets rose again on Tuesday as it looks like traders are trying to break out of the sub $3 level. We recently had taken a short position based upon a shooting star last week, and now are starting lose more and more confidence in this trade. However, the three dollar level should continue to be rather resistive, and it will take to move well above the $3.10 level in order to show the area “broken.”
With this in mind, we are still short of this contract but would not advise putting new money to work on the short side. We never stop losses in place, and are willing to let them behead as this trend has been so brutally efficient over the last several months. We’ve made a lot of money selling natural gas, and if it is time to stop, then we must. In the meantime we simply wait.
We certainly wouldn’t buy here as the resistance area above will ensure choppy prices at best. Obviously, we don’t want to sell more here as that would simply be adding to a losing position. If the market falls below the $2.70 level, we would add to our shorts as this would show an even more aggressive move lower. However, we do not expect that at this point in time and are willing to sit still.
Click here a current Natural Gas Chart.
Originally posted here
