Natural gas is such a great clean source of energy. A favorite for homes. Likely someday will power cars as well. Hard to believe longer term it will not become more expensive. But currently clearly in a shorter term downtrend (down about 5% today so far).
Looking at the daily chart it looks like we have already had a 5 wave up move and are now are in a abc...
Three touches on each side of the wedge, perfectly touched the uptrend line, as well as a storage report coming out after market close tomorrow. Due to falling wedge and bull price action since last march i am leaning long-side here, but do your own due diligence and watch the movement after the report. If price takes off upwards i would expect quite the move here.
fundumental seems weak, charts are confusing, but i'm long on that one. Hopefully it will support my estimated rally and go up, and it better be soon because if it will tag the 200MA it will cost a lot.
NG breaks 3.1 level and is likely to gap down again if it could not pick up the momentum. Partially it's due the warm whether forecasting this winter. If NG lost 3.1 strong support, it might even go down to 2.9, 2.68 and 2.55 for the next step
NYMEX:NG1!
Instrument at a crossing point between the Fibonacci levels taken on the Daily and the trendlines taken on the weekly.
If we zoom in and watch at the chart...
I would wait a bounce on the Blue trendline to confirm a more aggressive uptrend, or a bounce on the (lower) Red line to confirm a smoother weekly uptrend
Strong weekly candle filled the larger gap below from Nov 28 as well took back the 200 MA 3.30 (the caveat is there is still a smaller one Nov 21 2.852 - 2.891 but I expect it will wait for shoulder season if it fills since we've moved up for now)
Tested 20MA with a convincing push up = bias remains BULL
50MA crossed above 100MA
20MA closing in on 200MA
Up...
Take care
& analyzed it again
- it`s always your decision ...
(for a bigger picture zoom the chart)
This is only a trading capability - no recommendation !!!
Buying/Selling or even only watching is always your own responsibility ...
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Best regards
Aaron
Long-term trendlines are not compelling reasons to take a trade on their own, however, as participants begin to acknowledge them, the idea is more likely to gain traction as a socially constructed phenomenon.
In this case, Nat Gas has broken a technical trendline, that for many market participants is a *technical as an idea*.
