Somebody asked me to write a piece on the outlook for natural gas, so here goes:
The big picture is kind of “iffy” for gas right now. As seen on today’s chart–the spot price of gas may find support at the current $2.80-ish area—which lines up with the old neckline of its 2012 head and shoulders bottom. Should $2.80 (or so) not hold, the next stop brings us to the bottom of the shoulders at around $2.20.
The finesse indicators are not very positive. Moneyflow remains bearish, momentum indicators are oversold but not hooking up, and the environment for energy (oil) is not helping.
My two cents worth: Next stop, $2.20 unless something happens very soon!
Learn Technical Analysis – Hear Keith’s market and sector analysis for 2015!
I’ll be conducting a free technical analysis workshop at the Richview Toronto Public Library: 1806 Islington Ave, Toronto, ON M9P 3N3 – January 14, 2015 @ 7:00 PM. This may be my last library seminar for the winter, so if you live in the area – Come out and join the discussion!