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TFC Commodity Trading Forum

Feb Nat Gas/ Still A Sick Puppy *PIC*

Feb Nat gas broke down from the technical double top at 4.08 and continued to plunge through 3.55 support and even the uptrendline and price support at 3.32 that seemed to be stabilizing at. It then blew through that as well all the way back to the contract low at 3.09. Price in classic fashion bounced off 3.09 like a rubber ball after being so oversold but stopped at the last breakdown point and broken uptrendline at 3.32 and has sold off again. Price would need to re-clear 3.32 to even suggest an uptrend of any magnitude again. Note price run up to the falling 20ema in early Dec and twice in late Dec as it typically serves as resistance when price is below and as support when price is above. Meanwhile NG is a real sick puppy Charlie Brown..........Fundamentals show switching from Coal to Nat Gas stops being economically viable near the 4.00 level. Seems to be true enough looking at the chart. Feb NG is still the most active contract but the March contract has almost the same open interest and will soon be the contract most traded.