The Canadian Technician

$NATGAS

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Well, $NATGAS is making some interesting moves.

$natgas 20120803
The key will be testing support at $2.75.  A firm bounce off the level would be very bullish. We saw a major downdraft yesterday in $Natgas, but there are reasons to be bullish here. 

1) The price is above the 50 and 200 DMA, the H/S neckline is support and coincidently the neckline is also at the level of the moving averages. This should really create a strong shelf to find support. 

2) The H/S bottom has excellent technical structure and coincides with major market low levels historically. 

3) The $NATGAS price is generating strong fuel switching due to the environmentally clean fuel source. While Coal may rally, every switch away gets harder to revert back. 

Remember, the conference in Banff is only 30 days away. Follow www.CSTA.org  to enrol. Don't know what conference that is? Check it out, its amazing!

Good Trading 

Greg Schnell, CMT

 

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More