When this cycle ends a long term bull rally would be expected similar to what occurred in 2016 and 2012 but with the current situation EXTREME CAUTION must be exercised. I can not stress this enough, protect your capital at all costs in this environment. Just because the market should do something doesn't mean it has too, do not try to tell the market what to do.
This cycle low has the potential to be the bull run everyone has been waiting for but many of the Bulls will have no money left after the past year. This is not unusual for natural gas either, it can clearly be seen that natural gas is in a long term down trend. This chart doesn't go back far enough but natural gas has been in a down trend since 2005 with extreme counter trend rallies about every 4 years. These countertrend rallies present huge opportunity in both directions.
Blue rectangles show heating season, weekly cycle low usually happens in February, March or April. Cycle length getting long with last low in August.
Daily cycle suggesting a low around April 10 but weekly cycle is extended and wouldn't be surprising to occur sooner.
This cycle low will also likely be a monthly cycle low with previous lows in 2016 and 2012, trend line from those lows is potential target. See daily cycle targets chart for other possibilities.
See other charts below for reference.
This cycle low has the potential to be the bull run everyone has been waiting for but many of the Bulls will have no money left after the past year. This is not unusual for natural gas either, it can clearly be seen that natural gas is in a long term down trend. This chart doesn't go back far enough but natural gas has been in a down trend since 2005 with extreme counter trend rallies about every 4 years. These countertrend rallies present huge opportunity in both directions.
Blue rectangles show heating season, weekly cycle low usually happens in February, March or April. Cycle length getting long with last low in August.
Daily cycle suggesting a low around April 10 but weekly cycle is extended and wouldn't be surprising to occur sooner.
This cycle low will also likely be a monthly cycle low with previous lows in 2016 and 2012, trend line from those lows is potential target. See daily cycle targets chart for other possibilities.
See other charts below for reference.
