Natural Gas is in focus with the cold spell everywhere. A little global cooling for North America and a little extreme heat for Australia. One would think with the breadth of the cold weather, the record withdrawals from inventory and an improving situation for LNG exports, that Natural Gas would continue to soar.
Brooke Thackray seasonality suggests this trade is over now and will resume in the second quarter.
It is an important level on the chart to see if we can move into a new trading range above previous resistance.
It looks like it might be time to wait for more long positions. Stocks like Encana are not feeling the love yet.
It might be time to capture the gains up against resistance.
Good Trading,
Greg Schnell, CMT