Thursday, June 10, 2010

Natural gas poised to provide positive returns to swing trade investors

Time to change your point of view about natural gas! While I cannot guarantee its bullishness, of course, I can tell you the indicators have turned positive and it's poised at moving average support. The tick up this morning can be the beginning of a very nice wave 3 or C up, meaning a good move for swing trade investors. The logical stop-loss exit level for KI$$ (Keep It Simple Swings) traders is at yesterday's lows (do your own diligence of course). We'll have to work out target levels .... I'm keen to see if it can test back up to that $12 level in UNG (and whatever that means for $NatGas).

You can see the positive indicators and moving average support in the charts below. I know there's news about natural gas this morning as there's a move to shutter in some supplies because of the recent price drop. Maybe that will be a fundamental reason to go along with the technicals which I've been pointing out for some time. Now, let's not be complacent - there's always a risk. But it's looking like time to think in terms of buying the dips in natural gas. So with the usual reasonable trade protections - we're taking "the long view" right now.

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