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Writer's pictureMoor Analytics

Natural Gas is Bullish but Holding Exhaustion 4/22-4/23


On a macro basis: The decent trade below 2940-48 (+1 tic per/hour) warned of pressure. We have seen 524 tics of this so far. This is ON HOLD. The break below 2459 and back above it and the 2488 area brought in an entry into a bullish correction/trend projected greater than 200 tics from the low. We have seen 326 tics so far, and 291 tics from 2488. The decent trade above 2577 (-.5 of a tic per/hour) warned of decent strength. We have attained 202 tics of this so far. The decent trade above 2688 projects this upward 235 tics but requires a 2629 stop. These are OFF HOLD.


On a shorter-term basis: We held exhaustion above at 2756 with a 2759 high and rolled over 102 tics before short covering off the low. The timeframe for one of the exhaustion areas to hold more than temporarily (if this is a correction and not a trend) is not until 4/23. The decent trade below 2690 (+1 tic per/hour failed to bring in decent pressure, but the decent trade back above where it came in at 2691 has brought in 88 tics of the renewed strength warned about above. However, we now have exhaustion areas above to contend with at 2756-87, 2822-46, and 2924-63. The fact we are holding the lower of these and have failed back below 2759 suggests we may now start another bearish correction. Decent trade above 2786 (+.5 of a tic per/hour starting at 6:00pm) will warn of continued strength to test the next higher level and possibly beyond.


NOTE: this is just a small portion of the market calls I provide my clients twice daily in the Natural Gas and Energy/Gold complex. 'Decent penetrations' are specific amounts provided to clients daily as well. If you are interested, please feel free to reach out.

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