I've been pointing out that natural gas was putting in a low that should be a cycle low. The ETF ($UNG) shows a reasonable pattern on its daily chart that can support reversal, because it pushed up above the prior swing high and now pulled back on lighter volume. But the buying volumes on the push up weren't as great as we really want, so that's a note of caution. One strategy would be to buy with a stop at Tuesday's low, or slightly under Tuesday's low. As for the real natural gas contract, my weekly and monthly charts of $NATGAS, below, show that price has bounced up after hitting trendlines on both charts. These indicia all combine to say that natural gas is poised in a manner where it really can rise again.
I'm trying to avoid making a really bad pun about natural gas bubbling up! And it's true there's overhead price resistance so this commodity will have a lot of work to do, getting attention from competition like crude oil which also has a bullish chart (even if it pulls back on a dollar corrective bounce). There's fundamental news about natural gas too, that should help its price move up as the heating season progresses in the northern hemisphere.
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