Thinking natural gas, and/or oil, will make a new low? Think again, because they both seem to have shifted into "buy the dip" mode for uptrending. I say this partly based on the movement on the charts, and partly on cross-checking Tony Caldaro's Objective Elliott Wave counts on his public charts (Tony's Elliott Wave Lives On site at right, and his oil & natural gas charts below - thanks Tony!). UNG has drooped more, but it's probably just making a pullback and chance for new buying to come in. The commodity hasn't really pulled back - obviously moving differently. If $NATGAS pulls back much, maybe UNG will poke lower, or not - I'm not following the amount of contango, I'd just trade the charts on their own. The first big pullback like this, after the first move up after the lows, always feels very discouraging. Don't let it get to you! The better way to approach natural gas is to look for dip-buying opportunities.
Trader Brian "kalkgrun" is also sharing his thoughts on how to trade natural gas / companies, at the UBTNB3 blog with posts and comments.
Note - for what it's worth, Marc Faber said on Bloomberg TV tonight that natural gas made a secular low - so that should help too!
As for oil - different chart pattern, but I see that Tony is thinking it's got more upside, and the current move looks consistent. So there should be more upside for oil too.
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