$NATGAS still looks to be building a basing pattern, but the start of a new uptrend has been a long time coming. I mentioned this right at the end of yesterday's webinar, but I don't think the recording caught all of it. I was expecting Natural Gas to start turning up well over a month ago. The trade continues to be waffling around here. The losses are still manageable, but its frustrating when the planned trade stalls. Here is the chart.
While the consolidation continues, the price action broke below the up sloping support line. The MACD has rolled over at the zero line which is a bearish development. Perhaps we'll need to see $NATGAS test the $2.56 low again. The trade has not worked here in a reasonable amount of time, so it might be better to sit back and wait, rather than leave it at risk here. Thursday's low might just be testing where the stops are, but the MACD crossover so close to zero can't be a positive in terms of momentum. Time to watch very closely and have a plan in place.
Good trading,
Greg Schnell, CMT
