Tuesday, August 31, 2010

Natty Update

Since Sunday Nite's post  Natural Gas /Seasonal Lows , there has been the beginnings of a move up with some consolidation near the highs.

 clcik to enlarge
 The  5 min bar chart depicts what probably  is a 5 wave move up that could be a 1 up. If this consolidation is a 2 wave back, it can be deep and .618 or .76 is common as a retrace.
It did take out the initial trendline yesterday; 
 
It's a little early to tell whether NG has a bottom in place (this could still turn out to be merely a flat , sideways consolidation). However the initial move up off the lows looks like it will need some sort of additional leg up even if it's merely a consolidation. Additionally the late summer seasonal  low history cannot fail to be 
influential. SO
On the upside if yesterday was an "a" than the "c" will roughly  equal it at about 25 cents (spot mo.). There will obviously be resist. at the 4.00/4.08 area.
On the downside 3.35/3.30 and under that 2.95. Cannot be ruled out....it is the target area after all and has not been met yet.



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