A Timeframe Battle in Natural Gas
- Posted by Greg Harmon
- on September 12th, 2012
Two weeks ago Natural Gas, $NG_F, looked poised to move lower on a longer term basis when I wrote Natural Gas is Fizzling. The total body of the daily, weekly and monthly timeframes is still pointing lower but the shorter view has an upside bias. So that is not working out so well so far. Is the short term view strong enough to overcome the monthly view? Let’s take a look.
Natural Gas, $NG_F, Daily
The daily view above is now moving higher after retesting trendline support and making a new high. The Relative Strength Index (RSI) is moving into bullish territory and the Moving Average Convergence Divergence indicator (MACD) is positive and moving higher. Looks like a short term break out higher on this timeframe. if it can get above 3.30 it should gather some steam and may pull the monthly view higher as well. What about the weekly chart? Well it is making a higher low and with a bullish engulfing candle (albeit only two days into the week). Finishing here or higher,
Natural Gas, $NG_F, Weekly
another higher high, over 3.25 will go a long way towards strengthening the upside case. The RSI is not yet in bullish territory but is rising and the MACD is turning back higher, averting a cross to negative. These shorter term views are trying hard to correct the monthly view which is failing a uptrending resistance. Whether they can turn the tide may take a few months to find out but the short term view looks cautiously higher. If you are in this trade for 25 cents then, Giddy up! If you are looking for a $3 move then you had better remain cautious.
Natural Gas, $NG_F, Monthly
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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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