Sidelined Natural Gas Bulls Await Clear Signals

30 March 2011

The Commodity Specialist view -

NATURAL GAS - WEEKLY CONTINUATION CHART: Note that this year's correction on the continuation chart held above the 2010 low.

If the recovery gets going again then note possible resistance from the 76.4% 5.425 retracement.

Further out we would target the 38.2% recovery level at 6.720 plus equality target just above at 6.910.

NATURAL GAS - DAILY CHART MAY-11:

After brief violation of the Oct-10 low a Mar recovery has found initial resistance from the 76.4% bounce level.

This marks the beginning of a key resistance area, which also comprises the falling resistance line at 4.640 and channel top projection at 4.780. A break through these would be a clear bull sign for us.

First support is offered by the 4.171 28-Feb high now.

Philip Allwright

Mark Sturdy

Seven Days Ahead

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