Friday, January 8, 2010

Natural Gas Update

The  ABC structure up from 2.40 is probably complete. The 6.10 high is right on target,  seeNatty  or any of the last month's post's.  On the spot chart the C=.66 of A, a similar relationship as 2 to 3. On the Feb contract we have C=A.

click to enlarge
Shorter term it needs to overlap the 5.61 and 5.51 lows and under 5.32, the 50% pullback on the Feb contract (the .382 spot month retrace is at 5.35)  and it should start gaining momentum.

The structure down will have to be closely observed;  prob. another abc, with no new lows under 2..40, targeting some Fib retrace ie .618 at 3.82. That  spot month 2.40 low was an 85 % retrace of 15.78 and ending an ABC down that took years to complete. This little abc up is too abbreviated to correct that.

1 comment:

  1. Here are some natgas option mkts of interest today:
    NGH 5.69:
    Mar 7.00 call .095/.11
    Mar 5.00-4.00 put spread .135/.15

    Apr-Oct 5.85 strad strip 1.41/1.45

    Skokie Energy

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