Rewind to April 1st (yes, April Fool’s Day!). I has just published a Natural Gas blog with the title “Natural Gas Records Monthly Buy Setup.” At the time Natural Gas was just over 2 dollars and many folks remained uber bearish… and to be fair, from a macro level many may still be bearish despite the recovery higher. But, in an effort to be measure in my approach, I noted that those wanting to buy should look at layering in and setting a stop.
Despite my trader mentality and promoting risk management, many natural gas bears sent me notes that I was crazy for even presenting the contrarian view… no less, in a risk-disciplined manner. As many of you probably know by now, I like ideation. I believe ideas and risk parameters allow us to take on any trade. Furthermore, when you feel a stock or chart making you emotional, check yourself.
In the weekly and daily charts below, it is clear that natural gas is making another run at the 5o percent Fibonacci retracement level. Should this level give way, lateral resistance and the 61.8 percent Fibonacci retrace should become magnetic around 3.75 to 3.80. On the downside, watch the 50 day moving average and uptrend support.
Trade safe, trade disciplined.
Previous Natural Gas chartology here.
More charts found here.
Natural gas price charts with Fibonacci retracements and technical resistance levels as of September 28, 2012. Natural gas technical analysis and recovery charts.
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Twitter: @andrewnyquist and @seeitmarket Facebook: See It Market
No position in any of the securities mentioned at the time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
