Monday, December 7, 2009

Natural Gas Reversing or Correcting?



click on chart to enlarge
From Thur. Dec 3,
"So if the spot month chart is currently completing a "c" of  intermediate term B structure down from 5.35,
it is not a bad time to be scaling out of Jan / Feb shorts etc, esp since mo contracts are making new lows and the roll is relatively flat." Those who read this regularly know I rarely make explicit  trading comments. Got lucky this time.

Reversing or Correcting? The  last leg down on the Jan contract will be retraced .618 at 4.96, the spot chart .618 retrace is at 4.99, so above 5.00 and the spot high is really the next target. We will know soon if this is a reversal or correction.

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