Tuesday, October 6, 2009

NG Over 5.00 whoohoo

Natural Gas finally took out 5.00 by more than a few cents. On the spot month chart.... " If the next  leg is "c" = "a",  with "a" 4.39 to 4.99 it targets 5.20. If "c" =1.618 of "a" it targets 5.57, also C =1.382 of A.  Additionally 5.57 is the .236 retrace of the entire move down from 15.78 "   See Natural Gas Hitting It's Marks from Sept. 30.

It would be very constructive for NG to  hold the .618 retrace of today's little pop,  at 5.00,  coincidentally the back test as well. Now having made that point there aint a lot of money to be made between 5.05 and 5.20,  5.57 would be worth hanging around for, BUT...

What if the spot month is going to consolidate under 5.57 for the next month ? That will put pressure on the curve.

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