Nat Gas headed lower as expected to hit our target of 3.209/06 where we predicted a low for the day and in fact the market bottomed at exactly 3.207.
The bounce has already taken us to our first resistance at 3.300/310 which we predicted would be tough to beat and so far we have not made it through here. However a break above 3.325 does look more likely today for further gains to a target of 3.374/386. If we manage a push through this resistance we should close the gap at 3.426.
The downside should be more limited today with a recovery possible in to the end of the week. There is a little support at 3.24 then yesterday’s low at 3.215/207. Below here we hit strong support from the 5 month trend line at 3.175 which should see us bounce but a break could keep the pressure on for 3.122 then 3.087.
Long term levels
3.933 2012 High
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3.804 200 Week Moving Average
3.748 December High
3.645 Last Week’s High
3.411 Last Week’s Low
3.348 100 Week Moving Average
3.399 100 Day Moving Average
3.079 Weekly 38.2% Fibonacci
3.006 200 Day Moving Average
The article was first published by DayTradeIdeas.com
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