Natural Gas May Be Ready to Ignite
- Posted by Greg Harmon
- on January 15th, 2014
Natural Gas, $NG_F, looks like someone may be getting ready to light the fire. The weekly chart below shows that it completed a bearish Bat harmonic right before Christmas, and then retraced 38.2% of the move nearly to the penny before reversing back higher. Now approaching the high at 4.50 and breaking what could be seen as a bull flag, it carries a Measured Move higher to 5.11. That would be firmly in the next higher resistance zone from 2010 to 2011. It has support from the momentum indicators as the RSI and MACD also are bullish and rising. You can trade it now against 4.04 or wait for confirmation over 4.50. Do not play this via $UNG. That is a flawed product.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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