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Nat Gas Touches 2-Year Highs

Published 04/08/2014, 08:25 AM

Natural Gas touched the highest level since 2010, this winter and now its time to change the gear.

Now natural gas is trading around $4.49 and as we can see on charts, natural gas continue trading in a minor downside channel, and touching the top line of descending channel which was able to stop the rally too times earlier. At the same time this area is just below 38.2% feb correction level as well as indicators are turning negative.

On fundamental front, continue mild weather in US major gas consumption area will reduce the gas demand and gulf area still waiting for the first storm activity.

Natural Gas Daily Chart


Based on above studies, we will prefer to sell natural gas for possible target around $4.180, and then $4.030. A day close above $4.710 will reject the forecast.

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