Nat Gas did break higher as predicted, through 3.529/539 resistance as we bought back in to longs looking for the next target of 3.596 for profit taking. We have now hit the target this morning and exited longs.

This is tough resistance and we can sell in to shorts from here up to 3.613 using a stop loss above 3.626. There is a good chance of a top here but if we break higher we will be buying back in to longs, looking for the next target of 3.684 to take profit on some longs, but there is scope for a move as high as 3.744. We exit all remaining longs here and sell in to shorts with a stop above 3.770.

If we do see profit taking now look for a drift back to 3.559/552. This could hold the downside today so watch for a low but if we continue to slide we should see 3.520 on the way to excellent support at 3.485/470. Exit all shorts and buy in to longs as we approach this area in expectation of a strong bounce. Stops needed below 3.430.


Long term levels

3.933     2012 High

3.804     200 Week Moving Average

3.748     December High

3.579     Last Week’s High

3.354     100 Week Moving Average

3.338     100 Day Moving Average

3.328    Last Week’s Low

3.079    Weekly 38.2% Fibonacci

2.943    200 Day Moving Average


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