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TFC Commodity Trading Forum

Nov & Jan Nat Gas/ Nice Breakout *PIC*

Nov Nat Gas broke out above major resistance of 3.40 and in classic fashion consolidated above the breakout point in a tight pattern for over a week. Jan Nat Gas broke out over 3.78 and did the same thing.Gotta love those tight sideways consolidation tests after a breakout with chart patterns. Don't always work and some fail but for the most part they do work consistently well especially with 'clear horizontal price resistance' breakouts far more than trendline breakouts. Jan Nat Gas now has the highest open interest and the options don't expire until Dec. Price needs to hold above this important breakout point and zig zag higher to suggest a continued change in trend to up. Price should find support at the rising 20ema on a rising trend. Note the Modified MACD broke out above the 0 line in late June and came back and testing it as support successfully in Sept and curled back up again. Good sign. Other technicals are reaching somewhat overbought levels and very short term the CCI 20 is showing weakness but price action is king and it looking good by clearing the consolidation high. Price now is bumping up against the Fib 38.2% retracement level of the May/11 to April/12 selloff.