The natural gas markets had a fairly quiet day on Friday as the fall from earlier in the week ran out of steam. The longer term trend is still down, and until we close above the previous high in the $2.80 area, we consider the trend intact. Because of this, we only sell this market.
The candle for Friday is essentially an equal doji, and as a result we have a nice sell signal if we break lower than the low from Friday’s session. This should have the market looking for the $2 level again in our eyes. If we break higher however, we simply will wait until we get a weak candle to sell.