April Natural Gas
When I study the structural evidence stemming from the lows seen in early last month one thing pops out to me and that is its non-impulsive nature. Simply put , it is dramatically sloppy. I therefore believe it is non-sustainable and most likely due to get turned back. The high today at 2.731 came in at a cross zone convergence level and was immediately rejected. Also evident was momentum divergence in the hourly chart. To me all this points to lower prices to come. First target level comes in at +/-2.665. This area could put up a fight with a possible slide to +/-2.65. A close below hear won’t be healthy. My overall downside projection comes in around 2.500. Please follow along with me in my attempt to stay ahead of the price action in this and other futures contracts.