Monday, August 16, 2010

Natural Gas Consolidation Pattern

click to enlarge
The consolidation continues...for now. Above reflects one potential labeling variation on an obvious series of abc's. The eventual outcome of a pattern like the above would normally be a resumption of the preceding trend of course. 
I have been looking for a series of choppy abc structures down to some level between  3.82 and 2.40 ever since the 6.10 prints, with a likely target of 3.30 / 2.95. The above is exactly what you might expect.
The short term resistance at 4.37  may or may not actually get tested one more time, but the strong possibility of a "false break" to fish for stops is likely here. Bears should prefer that the highs get taken out by .5 cent and then rehearsed rather than an early test of the lows. 


No comments:

Post a Comment