Natural Gas... Rally Potential?

Reports this morning of paper buying 6000  ngx 320-350cs @.02 had me take a look at ole natty charts again.

From an Elliott perspective there could be a set up for a rally from this mornings lows;  ngu tagged the 50 % retrace point of the 2016 move $1.61 to $3.90.
5 yr.
click to enlarge

 1 mo.
click to enlarge

Note the RSI positive divergence.
Pretty close to equal legs down on the above chart, .23 and .24 respectively.

If there is a new upside structure, confirmation points are of course overlaps of previous highs, the first being 2.846 and then 2.99.

 The risk of trading futures and options can be substantial. Trading foreign exchange and energy derivatives carry a high degree of risk, and may not be suitable for all investors. 
The above is merely an abstract theoretical discussion mostly for my own entertainment, not trading advice or a recommendation.


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