Monday, November 9, 2009

Natural Gas Short Term view

Natural Gas Comex : Natural gas made new monthly low of 4.470 at start of the week to Exactly take support near the 55 EMA (marked by aqua line) on daily charts & bounced back to close near 4.665 lvls

Closely Looking at the EOD charts , yesterday Closing was a hammer Which Signals possibility of trend Reversal or Atleast some Sideways consilidation With Retracemnt . The Close is also Exactly the Near the Resistance of Falling trend Line which is Cuming From Recent top of 5.940

Traders Can take Small risk to go Long here with a SL below 4.351 Which is medium term strong Support and Look for a Possible Bounce on upside to Fib Retracemnet lvls of Complete Move From 5.940 to Low of 4.470 Trend Reversal level == 4.820 (23.6 %) --

5.105(38.2%) -- 5.265 (50 % retracement)

Looking at Indicators RSI is around 30 lvls & Fast Stoch is below avg 20 lvls Clearly indicating that its in oversold Zone and a Bounce cannot be Rulled out

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