Thursday, May 6, 2010

Natural Gas Short Term Outlook


click to enlarge
Note the 2 wave perfect .382 retrace of the 1 this morning immediately following the stats. and of course the instant reversal.
And on the shorter term 2 day chart a similar .382 retrace of lesser degree this evening.
click to enlarge
 The current wave down beginning today, Thur 5/6,  equals .618 of the 1 down at 3.75, equals the 1 at 3.54 and will be 1.618 of the 1 at 3.21.
from Tues. Apr 27 Natural Gas
" On the downside, the next Fib retrace support is .76 at 3.29.
With the equities in position to top out up here at the .618 retrace of the whole move down, accompanied by record bullish % numbers, hard to be positive on the Natural. In fact, a retest of the 2.40 level can not be ruled out."
That 3.29 is a .76 retrace of the 2.40 to 6.10 structure. Looks like it's on its way.





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