In the last 2 weeks prices of natural gas have lost nearly 12% off just under 50 cents in December futures. On the lows today my objective at $3.50 was achieved. With a 50% Fibonacci retracement complete dragging prices to oversold levels close out all bearish plays and look to reverse in the coming sessions.
The 50 day MA is being challenged as of this post identified by the green line. Let’s see in the coming days if the 100 day MA comes into play identified by the light blue line. I have started to price out bullish option strategies as well as and long future entries are on my radar…stay tuned.
Once we get a buy signal traders should attempt to get long trying to capitalize on a trade higher into the end of the year. I see a trade north of $4 into the winter and would advise long entries to be buying early 2013 contracts to allow enough time for the trade to develop.
By. Matthew Bradbard
To discuss in more detail this chart or any other you can reach me at:
mbradbard@rcmam.com or 954-929-9997
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