Signs of a Significant Secondary Low for Nat Gas
Early this morning, nearby natural gas futures pressed to a marginal, new, pullback low off of its most recent rally peak at 2.880.
The decline from 2.880 to 2.647 has the right look of a completed corrective downleg, while today's subsequently strong rally to 2.742, so far, exhibits a promising bullish price structure. This has triggered preliminary signals that nearby natural gas entered a new, potentially very powerful upleg off of a double bottom at 2.575 on Aug 29 and 2.647 on Sep 9, the Sunday evening low.
Should such a scenario unfold, then natural gas should be in route to a test of key near-term resistance at 2.870-2.880, which if hurdled and sustained, will project a climb to revisit its July-Aug. highs above 3.100. ETF traders may want to watch the United States Natural Gas (UNG).