I know plenty of Nat Gas charts are out there with the recent surge, but I wanted to take a moment to look at the bigger picture. Most charts I've seen are focused on the daily action, so for those looking to establish longer term positions, this is one commodity that looks ripe for building positions.
I've provided a rough estimate of the likely price movement with the black arrows, but the main thing to note is the pop through the down trend line from 2011. It's already been basing quite nicely, and now it's above the 50 Week MA.
A gap is left at the $20.10 area, so that is likely to be filled in the near term. If it's tested and holds, that's a great place for an entry.
Bottom line, the risk is mainly to the upside with initial Fib targets between $25 - $32 and a 200 Week MA coinciding with those horizontal prices. Don't rush into this one.
Look into Call options on dips to support areas and even consider selling Out of the Money Puts to back into shares when prices hit support.
Commentaires
BizkitBR
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looking back now that we are in March this was a very nice call
TheSessionMaker
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Appreciate it. I'm still looking for more upside long term, however some consolidation in this area would be healthy. After a couple more weeks I'll repost the weekly chart with updated analysis.
It still has a lot of work to do to get through overhead resistance, but as of now it looks like a commodity to buy on pullbacks. I'll continue holding a core position and trade around it.
charttrader
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Nice!
OldGoat
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Thank you
BizkitBR
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Thank You, Thank You.. I forget to look longer back like this sometimes... great insight...