Thursday, September 4, 2014

Natural Gas Headed for Lows

Yes, new lows are likely and will offer a superb buying opportunity for all the reasons mentioned here.

 Daily

The long term .618 retrace of the entire multi year rally, from $1.90 to $6.52, is at $3.64. That level was close to being tested and held $3.73 on Aug 18. Unfortunately the subsequent $.35 rally has failed to follow through and the entire structure now has a distinctive "abc" look usually associated with corrective moves.  So fresh lows ARE likely, but considering the seasonal factors and Elliott support not by very much.. $3.65 to $3.55 MAYBE.

Today after a weak open the EIA storage numbers were released;


  Injections were slightly above industry expectations, but still lots of catching up to do.



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