Monday, July 9, 2012

Natural Gas Hits Target

From the preceding June 28 post;
"This move up is structured in abc's, not unexpectedly. It may be nearing completion with y=w around 3.05 and currently looking a little overbought.

Daily
 click to enlarge
Note the negative divergence on the RSI and MACD.
 And  from the  May 1 Natural Gas Catches a Bid
" If the leg down from 5.00 is a complete 5 count, then a .382 retrace to 3.09 would be a modest expectation, EVEN IF this is merely a corrective upswing."
 Weekly
 click to enlarge
 Of interest is that the 1.90 low x 1.618= 3.06
 
Is that it ? Are fresh sub 1.90 lows next on the horizon?
Maybe but there is a pretty good chance of an X wave or abc down of greater degree to be followed by further upside. That 1.90 low is of significant long term importance.
 
Also from the May 1 post; 
 "there is reasonable doubt that this (move up) is corrective; again see  Natural Gas Hits Long Term Target
Note the weekly RSI and MACD have lots of room to continue moving up. (still the case)

PS the .382 retrace of the entire ABC move down from 15.78 to 1.90 comes in at 7.20
Is that likely? I wouldn't have thought 13,300 on the Dow likely 2 years ago."
 
 
 

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