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Is Natural Gas Ready To Ignite?

Published 01/15/2014, 11:00 AM
Updated 05/14/2017, 06:45 AM
NG
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Natural Gas (NG) looks ready to burst into flames. The weekly chart below shows that it completed a bearish Bat harmonic just before Christmas, then went on to retrace 38.2% of that move nearly to the penny before reversing back higher.

Trade Now Or Wait?

Now approaching the high at 4.50 and breaking what could be seen as a bull flag, it carries a Measured Move higher to 5.11. That would be firmly in the next higher resistance zone from 2010 to 2011. It has support from the momentum indicators as the RSI and MACD also are bullish and rising. You can trade it now against 4.04 or wait for confirmation over 4.50.

Do not play this via the U.S. Natural gas Fund (UNG) -- it's a flawed product.

Natural Gas

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