Generational Low for Natural Gas
Commodities / Natural Gas Apr 19, 2012 - 02:02 AM GMTBy: Mike_Paulenoff
Natural gas is in the midst of the establishment of a generational low, when everything appears extremely bleak fundamentally. This is a classic commodity capitulation period. From my perspective, the extended falling wedge type pattern once again is in a position to do serious damage to the well-entrenched shorts -- that is, if the price structure finds a way to hurdle 2.015-2.030 . . . 6.60 in the ProShares Ultra DJ-UBS Natural Gas (BOIL).
Tomorrow morning we get another round of natural gas inventories, which has the potential to be a short-covering catalyst amidst the slightest supply-demand provocation. The technical set-up argues that the price structure once again is at a near-term inflection point that favors a bullish resolution.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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