I mentioned in the past that NG still had to fall below that $2 range. It most certainly did this, but now what? NG does not run on your average looking impulse as its biggest bear market looks more like a diagonal decline, but with an expanded pattern in the 4th wave position. Will this low of $1.85 hold? Futures Natural Gas charts are horrible to display, as they will not work on the cash basis as there is not enough volume to display. Needless to say I have never been able to keep a detailed wave count on NG itself, and I don’t review it very often. It’s not at the top of my list.
Eventually we should see an NG breakout over those $6.0 peaks. With drilling rig counts crashed, I can see a squeeze in energy prices, as electricity production will be more in demand. How else do you think we can keep all those Tesla electric cars on the road? Solar Power is not going to do it! They may even have to bring coal back online, even though Obama tried to kill coal off.