Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Is Natural Gas Finally Ready to Rally?

By

Thursday's surge came just in time to be taken seriously as launching a new upleg.

PrintPRINT
The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Natural gas exploded upward in reaction to Thursday's EIA report. It had already gapped up from Wednesday's uncredible dip. Ongoing accumulation should now be trending.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Ranging around 83.00 doesn't equate to recovering, which would signal an upleg underway if confirmed above 83.33.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Thursday's gap down didn't extend much further before ranging sideways through the day. But not testing 1.3145 resistance suggests the drop back to 1.3020 remains intact.

Gold
Aug Contract GC; (NYSEARCA:GLD)
Thursday's narrow ranging was resisted by 1285.00, preventing buyers from gaining traction. But the resistance test should have been rejected more forcibly intraday if Wednesday's drop was reversing the trend down and not just correcting the rally. Not extending down sharply overnight would suggest Wednesday's drop had been absorbed.

Silver
Sep Contract SI; (NYSEARCA:SLV)
Sideways ranging Thursday has probably only delayed the pattern eventually extending down to test 18.88 and then potentially fresh lows.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
A retest of 135-16 resistance did reverse back under 135-00, signaling the bounce had ended. A second consecutive lower close Friday would confirm filling the gap back down to 132-14 is in-play.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
Thursday's gap up through 106.35 resistance extended to fresh highs. A second consecutive higher close would confirm the 110.65-110.75 target is in-play.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG), (NYSEARCA:UNL)
Gapping up Thursday was extended sharply higher on the EIA report, triggering the 3.73 buy signal in-time to still consider recent dips in to the 3.55-3.60 range as accumulation. A second consecutive higher close would confirm 4.10 is in-play.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE