Tuesday, October 27, 2009

Natural Gas Technical Analysis, (Part 5)

Natural Gas Chart:
Natural gas broke the down trend channel last month. It was very oversold and a technical rally was needed to normalize the price. On the other hand it found some problem to get above 5.20 seller were very active at $5.20 .
4.20 is the level to watch if natural gas moves below 4.20 it will damage the integrity of rally. If bulls push the gas above 5.5 it would be very positive. Note that fundamentals do not support natural gas price above $5.

UNG(United States Natural Gas) dropped below $11 if it fails to move above 11 with in next couple days bulls are in trouble. You are taking too much risk if you are a buyer at these levels. I would Wait for a pull back. Pay attention to 11.90 to 12.70 range, you should expect to see many sellers there.