Wow that's some serious Dude Iligence. I'm trying to wrap my noob Brain around it all but I like that January Ng pennant and ADX at 42 there. Thanks for taking the time to put this info together. I haven't traded natural gas much since early this year at the lowest low. $2.40s is my hope as well for a bounce/support area.
I get the feeling no one has noticed NG is once again pushing the Dec 2014 $3.35-$3.45 gap. Its also above the weekly 200ma, which is a big difference from Oct when it tested the 200ma but didn't stay above it. Since then NG pulled down toward the 50ma tested the $2.5s Aug low then based at $2.62. 50ma is moving up toward the 200ma looking like a Golden Cross set up. Back in Oct when NG was at $3.34ish Contango was in the .30s and climbing. The play was to buy DGAZ for the contango contract expiration.UGAZ was $55 now $35 due to contango and bleed. BUT Now contango between Jan and Feb is less than a penny. 6/10ths of a penny to be exact. No contango and expiration is weeks away. the UGAZ roll to Feb is a non event.
Natural Gas (Jan '17) 3.337 -0.015 3.370 3.316 5,126 00:27 CT Natural Gas (Feb '17) 3.343
Throw that in with what the NG chart is telling us, bullishness.
Last month from the post this responds to I said
"For the sake of analysis make an assumption that NG is a very manipulated trade everything is planned.
Jan $2.85 +1.39% forming a pennant
Jan has been going up while Dec has been going down. This is the start of the anticipation that its gonna be a cold winter."
A few days later NG broke out from the pennant. NG is currently forming another pennant, tomorrow is the report. NG will either break higher and close the gap or move lower and close gap(s).
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