Natural Gas Monthly Chart Review

Due to some downtime of this blog this I have just started posting.  I would say the NG crash we’ve had so far was pretty impressive! If I’m right we could be looking at a 5 wave run in Intermediate degree. Once I looked at it from a triangle perspective then, Natural Gas should see one more bear market low. The 200-day MA repelled the price of NG with little effort. Sure the “E” wave can fool us by still producing a fairly obvious correction. When NG hits the middle trend line then all support has failed already. I think NG cycles get attracted to0 or repelled by the solar cycles.  This could be a nice setup for solar cycle #25 propelling the price of NG north again. Commercial hedgers sure don’t see the bullish side of this story as they still have net short positions.

It’s still going to be a wild ride as any winter freeze scare could send NG flying. This can happen in the month of February which at times has been the coldest month of the year. The world economic activity is slowing down and a prime example is the iPhone sales slowdown in China and other countries.

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