We were greeted today new lows for the move then a spike of almost 37 cents to 2.628. Short covering? Fund buying? Weather? The fact is that there are technical reasons for that spike. For one thing, after breaking out of the channel, duty called for prices to test that line..currently it measurs up to about 2.67. There is a gap above current levels which would be closed at 2.71. Prices registered very overextended. Note my warning in todays commentary; ?I caution traders against getting suckered into the long side.? Granted that is is labeled a reversal by any definition, I still advise caution to avoid the long side. This is only one way in which the market will do all is can to make traders do something stupid.
Natural Gas