Will Natural Gas Breakout Or Breakdown Next?

Chris Vermeulen  |

We called the move from $4.75 to $2.90 in Natural Gas, and our predictive modeling solutions are suggesting a new upside rally in price is setting up for early Spring.

Very cold weather across the Northwest and Eastern US, as well as moderate demand globally, should prompt a renewed rally in Natural Gas through at least March or April of 2019. A move to, or above, $3.30~$3.40 would indicate there is little chance of a Washout-Low price formation and that a new rally is in place.

Over the past week, we have been remained bearish on natural gas but Friday’s strong close and Sunday nights price of natural gas futures showing a 7% pop signals a potential trend change happening.

In short, natural gas was oversold, its been testing the $3.00 whole number which acted as support for the price. Also, our cycle analysis does point to higher prices from here. The trend had not fully reversed, but it appears to be doing that as of this writing.

We believe Natural Gas provides an excellent opportunity for a move back to near $4.20~$4.40 as the extended cold weather and global demand continue to put renewed pricing pressure on this commodity. We believe the next upside move could be very fast regarding upside price recovery.

While natural gas is can provide some explosive moves for short term gains, if you are a short term trader looking for pre-market trade setups, and morning gap trades similar to the 8 winning trade setups we had last week be sure to check out our last post on Price Spike Trades, and Gap Windows!

Visit www.TheTechnicalTrader.com to learn how we can help you find and execute better trades in 2019.

Chris Vermeulen

DISCLOSURE: WE do not own natural gas at this time


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments


Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

What Is Petrolithium?

MGX Minerals explains the advantages of petrolithium and how they are helping to solve future problems today.

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.