Natural Gas Update: Overbought In Short-Term
Jason Sen | Jan 15, 2015 02:41AM ET
Natural gas February although the outlook has turned positive on the breakout, we have become overbought in short-term. Any profit-taking today meets support at 3285/3280 then 3250/45. If however we continue lower look for a good buying opportunity at 3205/3195. A low for the day is expected and we can try longs with a stop below 3165. Just be aware that an unexpected break lower however could target 3125. Try longs here with a stop below 3100.
There is quite strong resistance today from around yesterday's high at 3340 up to 3360. We should struggle here and a high for the day certainly possible but we must be ready to go with a break higher is there is large gap to fill up to 3440/3450. Unlikely we will make it any higher today and it should be worth trying shorts with a stop above 3500.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.