Natural Gas May Be Ready to Ignite

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.

nat gas

Don’t forget to download A Longer Perspective, my take on 12 broad markets for 2014 and beyond, for the price of a latte.

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through December 2013 Expiry and sign up here for the free 7 day trial before you pay.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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
Dragonfly Caps Blog