Diary of a Financier

Nat Gas Making a Run

In Capital Markets on Mon 25 Apr 2011 at 09:17
  • NG/1 @ $4.55 finally ready to break out of its death-spiral.
  • Next target at $5.
This is worth watching, because for the first time since it rallied out of a 2009 slide, Natural Gas (NG/1) is building a bullish setup as it enters the week’s trading at $4.55 in the front-month contract:

NG/1 daily trend- passed the weak $4.50 resistance in a short-term bull trend.

Not only do I find the indicators setting-up bullish signals, but the price-action is following-through:

NG/1 daily extended- MFI has already confirmed a bull-trend, now MACD can follow by breaching resistance to send Nat Gas through $5.

Zoom in a bit tighter to see support, resistance & major trendlines:

NG/1 daily

The last shoe-to-drop is the longer-term chart, characterized herein by the weekly, which has indicators building bullishness, but the price just needs to break resistance (having hammered out convincing support just under $4:

NG/1 weekly

–Romeo

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  1. NG/1 topped-out at 4.798, a double top, as illustrated in my charts. Not quite the $5 target, but substantial gains for UNG position, which I closed on the way back down (+1.6%).
    I plan to revisit Nat Gas in the near future.

  2. […] noted the brilliant NG setup a few weeks ago, which was only waiting for the longer-term charts to catchup before confirming a […]

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