As $NATGAS went through a price spike recently, we have seen some big moves into the $NATGAS stocks.
Encana and Perpetual are two Natgas names that are really starting to soar. It looks like the year for $NATGAS. Nice when the sector start to make multi year breakouts.
Encana went to 2 year highs this week.
The RSI at 70 has not happened for the last 5 years. The SCTR has moved above 75 which I find particularly attractive.
It is even more attractive when the Weekly Full Stochastics (note the settting) is above 50. Surging above 80 is very bullish. The MACD is just breaking out. I wrote about Encana 2 weeks ago. Look at the volume surge in October through December. Some would say we are late to this party. Now that Encana has become a top quartile stock, the institutions will be adding to positions. There has not been an easy time to hold onto this stock for at least 5 years. I'll leave it to each individual to find an entry they like as this is obviously extended and buying a pullback would be more prudent. It might take off like Boeing did. This stock has some unbelievable assets. They have laid off lots of staff and are very lean. Here was the posting on Encana.
Here is Perpetual.
Perpetual has a strong RSI up near 70. The SCTR is breaking out. It hit a new 52 week high. The MACD is rising above zero. LOOK at the volume trait....Wow!!! The volume dried up as $NATGAS rebounded. Nobody was selling, but the smart money was buying. Recently, with the spike in $NATGAS, this volume broke out. The MACD is breaking out to the upside after sleeping through 2013. The Full sto's are making higher highs above 50. Very bullish.
Both these charts have some great long term traits.
$NATGAS is currently pulling back after being well over $6. Summer cooling is actually higher demand than winter heating. I am watching for a higher high than the previous week on the $NATGAS weekly.
We can see the Bollinger Band pinch point last fall and the price action in the $3.00 to $4.50 range. We have 40 WMA just below at $4.03. The MACD is pulling back but is well above zero. The Full Sto's are just puling back to 50. We would like to see that hold 40. Same with the RSI up top. We want to see it hold 40.
Find your favorites. Maybe you like the two listed, but there are many to choose from. I think the run into $NATGAS stocks is about to start from long term bases. Nothing is a sure bet, but this is looking very interesting.
Good trading,
Greg Schnell, CMT
