Thursday, August 9, 2012

Post #1001- Natural Gas Update

It's been awhile so a little review might be in order.
 Natural Gas exceeded the resistance levels of 3.05 to 3.10 noted in the previous post from July 9 Natural Gas Hits Target, by 17 cents.
While it did run through that zone, hopefully readers were long from the 1.90 area ...pls see Natural Gas Hits Long Term Target  , from April 19, to capture 1.15 /1.20
At this point while still really liking NG for the long term, it is looking vulnerable to a Fibonacci %  pullback following the ABC up from 1.90 to 3.27.
Daily

click to enlarge

There is a seasonal low window in mid Aug. normally followed by an avg. 115% rally and , while it has not been much in evidence the last couple years, it could exert influence anytime especially following a sharp move down to Fib. 2.58, or 2.42.
So medium term risk of a deeper pullback as in an X wave, offering longer term opportunity for another abc up.

Short term ranging 2.80 to 3.00 with today's storage report maybe giving a little help for positioning. 

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