Tuesday, August 11, 2009

Natural Gas Lows Ovedue

Seems like a long time since NG made the 3.155 lows, but it was only April. The subsequent corrections have been both time consuming and not insignificant : 4.58 from 3.15 is 45%.
After the ABC correction seen over the last mo., new lows are much more likely. Support under is 3.22/3.20 and 3.04/3.00. It may be this is tracing out a diagonal triangle finish.
BTW still lots of spec short O.I. 245,647 vs long O.I. 83,827. And with new lows under 3.155 Long Term risk IS to the UPSIDE.

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