Best Financial Markets Analysis Article The initial recovery in NYMEX Natural Gas from a 2009 low point came to a halt early this year, on the continuation chart. Subsequent pullback has now encountered interesting support, offering the chance for recovery, but bulls still await the required signals.

The Commodity Specialist view

DAILY CHART - CONTINUATION:

On the Continuation chart a significant low point was seen in Sep-09 (though not apparent on the front month charts).

It produced a Key Reversal Month, and heralded initial recovery.

This year’s pullback has now found clear support from the 61.8% retracement – now see the Daily May-10 chart.

DAILY CHART – MAY-10:

In the Commodity Specialist Guide we will shortly be switching to the Jun-10 contract, but we stick with May here.

S/term support has emerged from around the 3.850 1.618 swing projection (off prior Dec/Jan rally), close to 61.8% support on the Continuation chart.

At this stage a recovery through the falling return line, i.e. a close above the recent 4.3340 high and coinciding 23.6% level, would sideline the bears s/term, and signal a recovery attempt underway.

There could well be an initial struggle to clear resistance

offered by the 4.656 03-Dec low, where the 38.2% level resides too, but there could be later scope for a push higher towards the next key overhead level around the 5.110 28-Jan low, where 61.8% and a Fibo projection (not shown) are also present. Meanwhile we must await the signal.

Mark Sturdy
John Lewis

Seven Days Ahead
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