Well, $NATGAS is making some interesting moves.
The key will be testing support at $2.75. A firm bounce off the level would be very bullish. We saw a major downdraft yesterday in $Natgas, but there are reasons to be bullish here.
1) The price is above the 50 and 200 DMA, the H/S neckline is support and coincidently the neckline is also at the level of the moving averages. This should really create a strong shelf to find support.
2) The H/S bottom has excellent technical structure and coincides with major market low levels historically.
3) The $NATGAS price is generating strong fuel switching due to the environmentally clean fuel source. While Coal may rally, every switch away gets harder to revert back.
Remember, the conference in Banff is only 30 days away. Follow www.CSTA.org to enrol. Don't know what conference that is? Check it out, its amazing!
Good Trading
Greg Schnell, CMT
