$NATGAS looks like one of the strongest trades of the year. This accumulation of stock names should be interesting to watch for the year 2014.This blog will provide a list of Natural Gas stocks in the Canadian market. I want to thank Landman Tim Campbell and others for helping me find the companies most influenced by natural gas.
The closest we are going to get on fundamental analysis is that they are natural gas stocks. No area plays, no reservoir analysis. Just Natural Gas Industry producers. I recognize there are also LNG players, Shippers, Clean energy companies, Engine modifiers all related to Natural gas. This is just looking at the Canadian listed Natural Gas producers. ECA is also listed on NYSE.
Lets start with the Natural Gas Chart.
If you have been following the blog, you'll remember we were looking for a spike finish in $NATGAS. That happened. Now it has pulled back to support. Here is the inventory picture. This is from the EIA.
Here is a closeup of the current situation.
The bottom line is there is a big inventory drawdown. I'd show a picture of my front yard with snow all over and it is the end of March. We should be hearing about golf courses opening and it is snowing this morning again. Eventually winter will subside. But the real story is that Air Conditioning has a substantial demand for Natural Gas as does Winter heating. This is a great story. Let's look at the stocks. I have 20 of them. I have set them up so they print well.
Nice chart to start with. These are listed alphabetically. RSI holding above 50. SCTR launched into a top quartile stock this week. Price broke above an 8 month consolidation this week. Volume is piling in. MACD is turning up. The stock continues to outperform the Canadian energy sector.
Next is Arc Resources.
RSI nice and strong. SCTR is just entering the zone of interest at 70. I like them better when they become top quartile stocks. I think it could be as early as next week but the chart will tell us when. 5 month consolidation. Clear lower left to top right chart. Volume piling in. Volume is getting quiet just before the break out. Thats good. No sellers showing up for work. MACD just turned positive. Lastly, the stock is outperforming the sector, but it has tracked sideways for 6 months.
Birchcliff RSI = Strong. SCTR broke out in January. Broke through resistance at $9.00. Volume piling in. MACD soaring. Clearly one of the strongest stocks against our sector.
I think you get the message. Up 25% in 8 weeks.
Here is Crocotta. Just breaking out today!
DonnyCreek
This one is not as positive. RSI holding above 50. No SCTR as it is traded on the Venture exchange. It has currently pulled back to support and it recently failed at resistance. You can see the MACD has rolled over and the stock is only marginally outperforming the sector.
Next is Delphi.
Delphi is absolutely knocking it out of the park. Look at the volume piling in.....!
Hang on to your hat for this one. Kelt. SMOKING!!!!!!!!!!!!
Look when the SCTR crossed on Kelt. Then look at some fund holding the stock in a tight range for a 5 month period. Then it exploded higher. Wow.
Here is NuVista.
Recently broke out, consolidated and closing on new highs again today.
Peyto seems to be in a trend.. Just saying.
Peyto had a consolidation around May to December 2013. It just keeps pushing higher.
I wrote about Perpetual last week.
Pine Cliff is traded on the Venture so no SCTR. Check out the volume this week. 25 Million shares!!
Painted Pony is probably one of the most beaten down. The SCTR has not hit 75 but is approaching the zone of interest. You can see it is just starting to uptrend against the wider sector on the lower pane.
Artek is a nice looking chart just breaking out above huge resistance. Volume piling in.
Storm has been surging for a while. It is listed on the Venture exchange, but a nice tight price action chart.
Trilogy has a bizarre chart. From 2009 to 2011 this stock went from $4 to $38. It has really traded in a range for 3 years now. Even the fire in $NATGAS stocks has not been able to ignite this one. I expect the 40 WMA to be broken above soon, but there are so many great ones to choose from.
There is a lot of consternation showing up here on Trilogy. Look at the massive volume. The MACD is starting to trend higher. This is one of the Clay Riddell Stocks. He is a company maker and currently has interests in NuVista, Trilogy, Tourmaline, Paramount to name a few. I have a Clay Riddell Chartlist he has so many.
Next is Tourmaline. Another Clay associate. Nice lower left, top right chart!
The bottom line. This Industry group looks to be on its way much higher from here. I'll let you figure out how to trade it. If you would like to see this list as a chartpack, send me an email. We could set it up that way. If you have other stocks that you think should have been in here, let me know as well.
The majors like CNRL are so dominate in both oil and gas, I did not include them. There is a big reason why the majors are breaking out to 52 week highs as well. Keep in mind, these are all soaring while the price of Natural gas has pulled back every week for the last 5 weeks.
Good trading,
Greg Schnell, CMT.
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