Natural Gas

NGZ11 – December Natural Gas (Last:3.917)

By: Rick Ackerman – Posted in: Current Touts Rick's Picks

Not for the first time since its epic collapse of 2008, natural gas looks like it might have made an important low.  Many traders and investors keep an eye on the long-term natural gas charts in anticipation of another big uptrend from current low levels.  There was a healthy rally two years ago, but since then, bottom-fishing nat gas has been a mug's game.  Yet the clean-burning fuel undeniably has value, and every two or three years its price explodes upward.  The attached chart makes a hidden-pivot case for last week's low as a turning point.  The jagged intraday charts of natural gas futures are not to every trader's liking, but if you have the direction right, the rewards can come quickly.  Don't venture onto this battlefield without your hidden-pivot weapons, and strictly limit the risks you take.  (Posted by Doug "harry" McLagan)

NGZ10 – December Natural Gas (Last:3.986)

By: Rick Ackerman – Posted in: Current Touts Free Rick's Picks

Natural gas might have made an important low recently.  After its major high in mid-2008, the price of the clean-burning fuel declined by more than 80% over a fifteen-month period.  A large bounce (in percentage terms) gave way to another downtrend which has lasted throughout 2010.  Recent price action raises the possibility that natural gas has made an important secondary low and that it might be ready to join the bullish party that most other commodities have been enjoying.  The futures are trading just below the midpoint (at 4.008) of a pattern which began with a powerful short-covering rally that peaked a week ago.  If the sibling "D" target of 4.274 is reached, additional prior highs will be taken out, and the recent low of $3.50 will begin to look very important.  Traders should watch for smaller patterns to provide opportunities to get long.  The "D" target might present a chance for shorting with a tight stop (probably no higher than 4.281), but if the futures get that high, traders should take seriously the odds that a najor new uptrend has begun.  (Posted by Doug McLagan)

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