Signals Lining Up to Buy Natural Gas
- Posted by Greg Harmon
- on June 27th, 2012
Last week, the latest selection in the Natural Gas story, Natural Gas is Not Breaking Higher, argued that the turnaround may be starting but it was not yet time to buy Natural Gas ($NG_F, $UNG). Tuesday was the first signal to enter and we could get another at the end of the week. The daily chart below shows that the price broke above the neckline of the Inverse Head and Shoulders mentioned. This is a long entry signal for aggressive traders, with more conservative traders
looking for a retest and hold of the breakout or something like a 3% move above the neckline to confirm. Recall that the price objective is at least 3.60 so there is some leeway. But the second buy signal from the weekly chart below is also about to trigger with a move over 2.84 on the weekly chart, just 2 pennies away. Easily achievable by Friday. And the way it has been going with long white candles finishing near the highs, the Three Advancing White Soldiers pattern will confirm with
a bullish signal as well. These signals will have support from the Monthly chart below on a long term bullish view. With Hammer and Doji candles from April and May confirmed higher, and support from the rising Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator about to cross positive, all signals will point higher. Friday’s close seals the deal.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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