Friday, December 26, 2014
NATGAS Natural Gas Weekly Chart Natty Gas Drops Under 3.00 for First Time in Two Years
At about 7 AM EST, natty gas leaks lower and drops under 3.00 to 2.98 for the first time since September 2012 over two years ago. Natty may be playing follow-the-leader with oil. The gap from two years ago is key; price has been on an island above 3.05 ever since. The intraday low this morning at 2.98 is at the bottom blue line at 2.97-2.98 and price bounced back to 3.03 now leaking lower again to 3.01. The indicators are open to a dead-cat bounce but the RSI is leaking lower wanting to see lower lows in price going forward. The falling red wedge may play out with price wanting to test the strong and sturdy 2.7-2.8 support. Commodities continue to trail lower as China's long multi-year and decade construction spree fades. Aluminum smelters, fertilizer facilities, steel mills and other manufacturing industries are large users of natty gas so lower prices hint that the global economy may not be as healthy as everyone thinks. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.