Friday, September 11, 2009

Natural Gas Celebrates

The move down from 13.70 to 2.41 can be counted as 5 waves with the last wave from 4.08 (or 4.16 depending on your count) complete for "C".  The "A" was the 15.78 to 4.05 move and "B" 4.05 to 13.70.
The termination of C at 2.41 makes for a fibonacci 85% retrace from 15.78.
As has been mentioned previously, the risk of a major move up is HIGH given that scenario.
So a .382 retrace of 15.78 to 2.41 targets 7.52, and 50% targets 9.09.

Shorter term any retrace down from here should hold the 50% point of yesterdays rocket, and the break out point around 3.02, also the long term trend line referred to in previous comments.

On the upside taking out the .618 retrace of 4.08 to 2.41 at 3.44 will help confirm that last leg down is complete.

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