The July'09 NAT GAS contract is heating up in an emotional roller coaster. Yesterday's strong showing produced a positive corrective signal reversing sentiment. Is the MKT turning? Don't make any commitments.
The MKT has been at the edge of the abyss and volatile trading conditions should be expected before the contract takes the leap or runs away from the edge. Key off the 3.685 Inflection Pivot for an indication of the session tone. Below here yesterday's signal is all noise with the 3.490 support pivot the turning point. If the buyers are going to keep the controls they will support any weakness here. A held failure from 3.490 is a sign of weakness that puts the contract back on the defensive down to 3.250. Only under this support is the rug pulled for a drop down to 2.876 and 2.640.
A held trade above 3.685 has the MKT flirting with a acceleration in the positive momentum. Stay nimble. 3.729 and 3.795 are both spoilers for any optimism. Only above 3.795 is a positive shift confirmed targeting 4.266-4.222 on the initial surge. No follow through is expected.
JS
This post supports JS Services Strategy Based Trading approach. For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.
