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Friday, January 11, 2013 4:19:12 PM
Natural Gas Showing Signs of a Near-Term Bottom
By MPtrader
* Friday, January 11, 2013
What do you know, United States Natural Gas (UNG) rallied after yesterday's bullish inventory data, preserved the gains, and followed through to the upside today!
Today's strength has hurdled the nearest-term resistance line at 3.261, which has confirmed the establishment of a meaningful near-term "W" or double-bottom formation that should mean the correction from the Nov 22 high is over.
That said, however, let's notice that the price structure is pushing up towards a much more important and consequential test of its Nov-Jan resistance line, now at 3.337.
If nearby natural gas can climb above 3.337 and its prior recovery-rally peak at 3.352 Jan 7, then my work will conclude that natural gas has started a new upleg in the underlying, incomplete bull phase off of the Apr 2012 low at 1.902.
Right now, I would not bet against upside continuation in natural gas.
http://www.mptrader.com/middayminute/
George.
Click on "In reply to", for Authors past commentaries.
By MPtrader
* Friday, January 11, 2013
What do you know, United States Natural Gas (UNG) rallied after yesterday's bullish inventory data, preserved the gains, and followed through to the upside today!
Today's strength has hurdled the nearest-term resistance line at 3.261, which has confirmed the establishment of a meaningful near-term "W" or double-bottom formation that should mean the correction from the Nov 22 high is over.
That said, however, let's notice that the price structure is pushing up towards a much more important and consequential test of its Nov-Jan resistance line, now at 3.337.
If nearby natural gas can climb above 3.337 and its prior recovery-rally peak at 3.352 Jan 7, then my work will conclude that natural gas has started a new upleg in the underlying, incomplete bull phase off of the Apr 2012 low at 1.902.
Right now, I would not bet against upside continuation in natural gas.
http://www.mptrader.com/middayminute/
George.
Click on "In reply to", for Authors past commentaries.
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