Natural Gas industry finds itself in an odd predicament – total production is still at record levels, and may continue to climb, albeit at a slower and lower rate. At the same time there are widespread financial problems in the industry, particularly for gas-focused companies. One of the big questions regarding production is whether Texas oil drillers can keep gas output growing enough to offset the declines underway in Appalachia.
- Nick Cunningham
Let's start after this current summary.
Summary
When one of these possibilities comes true, I will share my opinion with another clear judgment.
Best regards.
- Nick Cunningham
Let's start after this current summary.
- Natural gas prices continue to be dominated by bears under the trend line.
- The risk / reward ratio for the continuation of the bear market is now at 2 levels.
- When we look at the graph, we see a bearish wolfe wave formation, but we cannot say that it started because prices above the reference point.
- I think over 2.500 - 2,656 area bears will be replaced by bulls. ( 2.656 = Stop-Loss Level )
- The current trend line is not a very accelerated and reasonable line, but may be an indicator of excessive pricing.
- The temperatures are above the seasonal norms all over the World.
- The support-resistance levels to be followed are:
-Support Level : 1.647
-Resistances : 2.5 - 3.05 - 3.9 - 4.527
Summary
- I don't see a very valuable risk / reward ratio for opening positions on a weekly basis, but for the downward refraction of the bullish wolfe wave, opening short for lower time periods can be considered.(Breakout Bullish Wolfe 2-4 Reference Trendline )
- I can look forward to an opportunity for a clear upward break of the orange trend line and 2.5 resistance, or for long positions over long periods of time below the level 2, ie close to support.
When one of these possibilities comes true, I will share my opinion with another clear judgment.
Best regards.