-->Natural gas (NG) is used everywhere, to run buses, to heat homes, to run factories, to get oil out of oil sands. I've been watching natural gas with interest ever since its high of 15.78 back in December 2005. From that high, NG collapsed to a recent low of 5.64 on July 7. Now I'm wondering whether NG has hit bottom and is in the process of moving higher. The answer resides in the weekly chart below.
The red line is a 40-week moving average; the blue line is a 10-week MA. Note that this is the third time this year that we've seen a weekly rise above the 10-week MA. I'm thinking that this third instance could be the turn to the upside. I note that RSI has been creeping higher. MACD at the lower part of the chart has been rising, but strangely even while MACD has been rising, the price of NG has been declining.
A plus in the picture is the 5-week rate-of-change, which has been moving up on a trend basis (second panel from the bottom). The lowest panel on the chart shows the full stochastics, and here too we see a slow, almost subtle advance. So looking at the whole picture, I believe that there's a better than even chance that natural gas has seen its low and is now in the process of heading higher. If so, this will add expenses to consumers while increasing profits for big NG producers such as ConocoPhillips (COP). Berkshire, by the way, bought a 1% position in COP. I've recommended COP many times in the past.
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