Natural Gas in a holding pattern above strong 200 week moving average support at 3715/05 and staging a recovery as hoped. Our 3820/25 target was hit again yesterday but a sustained break higher must be seen today to signal more positive action and a move towards strong trend line resistance at 3885/90. Above is much more positive with a gap then to fill at 3930/40 which could well hold the correction at this stage but a break higher should then target 4005/15 for a selling opportunity.
All important 200 week moving average support at 3715/05 is key this week of course. We already know this is our best chance of a low for the 6 week bear trend. Bulls must work hard to defend this level this week if we are to mount a correction in this severely oversold market. Exit shorts and try longs but be aware that we also have longer term Fibonacci support at 9660/50. These are important major longer term levels and a good chance of an end to the steep 6 week sell off.