Thursday, July 22, 2010

Natural No Longer Oversold

From the last NG post,  Natural Gas Update ,
"Looking a little oversold with minor positive divergence on the hourly RSI."
It was trading 4.30 at the time.
 
It's not looking oversold now, and after a little abc up of  .42 ,  in fact it's displaying some NEGATIVE divergence on the RSI.
As discussed in Natural Gas Update
It has already settled below 4.35 the .618 retrace of the spot mo structure up from 3.85 to 5.19. New lows under there will project to the next Fibonacci support,  .76  at 4.18. That level represents a very deep .88 retrace of the last leg up beginning on May 25th at 4.02, and really confirms that this move down is a new structure.
The next targets are 3.30 and really 2.95, see above link.
Personally , I think taking out 4.45 signals it's on it's way. That BTW is the .618 retrace of 4.29 to 4.72as well as obvious horizontal support.

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