Natural Gas is in focus with the cold spell everywhere. A little global cooling for North America and a little extreme heat for Australia. One would think with the breadth of the cold weather, the record withdrawals from inventory and an improving situation for LNG exports, that Natural Gas would continue to soar.
Brooke Thackray seasonality suggests this trade is over now and will resume in the second quarter.
It is an important level on the chart to see if we can move into a new trading range above previous resistance.
It looks like it might be time to wait for more long positions. Stocks like Encana are not feeling the love yet.
It might be time to capture the gains up against resistance.
Good Trading,
Greg Schnell, CMT
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
Learn More
