Daily Forecast - 28 August 2014
Nat Gas October contract
Natural Gas hit our target of 3995/4000 for a selling opportunity & topped exactly here. This trade worked perfectly as prices dipped to good support at 3895/85 for our buying opportunity to bag 100 ticks. The bounce took us back to 3975 for another potential 75 ticks. The October contract needs a break above 4030/40 to continue higher today. We can then target 4080/90 & perhaps as far as 4120/30.
Overbought short term however so failure to beat strong resistance at 4030/40 keeps the market under pressure & with the August range. A dip to 3970 likely but this could hold the downside initially this morning. However if prices continue lower look for a buying opportunity at 3930/10. Exit shorts & try longs with stops below 3890.
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