Natural Gas Chart Update:
You cannot be bullish until this wedge breaks.
As I said in every post for the past 2 weeks.. if U.S equities were to fall so will natural gas [as what happened today]. Becareful guys.. I suggest you read my cycle theory from yesterday to understand what's happening.
Support/Resistance for october contracts
$3.72-3.776 Resistance
$3.482-3.524 Resistance
$3.15 Resistance (ng needs to break $3.10 & $3.15 for any sustainable rally to occur).
$3.10 Resistance (see above)
$3.00 Resistance
$2.90 Resistance
$2.75 Support
$2.70 Support (tested once on august 27th)
$2.64 Support
$2.50 Support
Poll [was released on August 24th]
59% of participants are bullish (-1% change from yesterday)
29% of participants are bearish (+4% change from yesterday)
Bottom Line:
There is a lot of uncertainty about to occur in the markets. I would stay out IMO.
If you are planning to invest in natural gas please wait until a clear confrimation of the bullish wedge break.. in-order to not get wipsawed. If you are planning to invest in equities. I would wait until September ends IMO. No one ever went broke being flat.
E-mail me at zeeshan_maq@hotmail.com if you have any questions.
Good luck guys.
