NATGAS Natty Gas Weekly Chart

NATGAS natty gas weekly chart shows that rumors of its demise are greatly exaggerated. Price plummeted now that Pennsylvania is the Saudi Arabia of Natty with the Marcellus Shale, but, the chart clearly shows the low in natty price occurred back in August 2009. After that, positive divergence bounced price into a sideways symmetrical triangle. The indicators are very agreeable to this trend as well so price has moved sideways between 3.5 and 5.0 for the last year.

The strong downward trend in price in 2008 and 2009 ended with the August 2009 low as the ADX shows (looks like the pink box was dropped by the chart software, it should be higher). The vertical base of that triangle is about three dollars so whenever price breaks out to the upside from the triangle's top rail, the target is three dollars higher. Thus, a natty price of 6 to 7 is not unreasonable a year from now, contrary to what fundamentals would want you to think. Perhaps with all the public outcry over frac water pollution as well as the natty gas well explosions, the shale gas wells may not be contributing to supply as quickly as anticipated, hence, price will become buoyant as natty demand increases but supply plays catch up. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.