Tuesday, March 12, 2013

Natural Gas: A Bull or Bear?

A lot of North American natural gas producers had a pop last week.

The big question here is, was the advance just a sucker rally or, are we into the early stages of a new bull market in the natural gas complex?

Our weekly plot of a continual the natural gas (NYMEX) futures is clean with no technical studies except a relative spread vs. a crude futures contract. Now aside from the current improving relative perform vs. crude, there is a very important reversal pattern which I have not identified.

Two questions: – Can you spot the pattern and what investment decision would best take advantage of this chart? I will refresh in two days.

 PS: Take a look at a Jr. gold miner vs. GLD chart


Edmagee said...

Good evening Mr. Carrigan,

I will propose the important reversal pattern is the double bottom at approx. 3.10$ in January & February, not necessarily the Inverse Head & Shoulders in the Spring of 2012. A potential way to play it would by and ETF like the HNU.

PS - But then, again I overstayed the gold party and it has not been fun.

dh12 said...

Looks like a cup and handle formation. What did I win for that?