Friday, December 17, 2010

Natural Gas Nose Dive

The sharp move lower in Natty over the last week, at 68 cents (remember the good ole days!), represents a 15% decline in a week. You don't see that % decline, that quickly, often. 
This mornings lows of 3.96 represent a 50% retrace on the spot month chart of the 3.28 to 4.64 structure. Additionally a case can be made for 5 subwaves down from 4.55
click to enlarge

Note the negative divergence on the hourly 14 RSI.
So a bounce from near here would be expected ...50% of the last 4.55 to 3.96 leg is at 4.25, .382 = 4.18.

The last post calling for the X wave down that we are experiencing, was pretty timely and I hope everyone got a look. I Instant Message Skokie Energy clients when  I post, and also try and feed Twitter. If you email me with some info I will add you to the I M list. guywbishop@gmail.com

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