Natural gas is heating up
The latest chart analysis confirms an important low for natural gas, and several great plays are now being presented, including an ETF that could triple.
- The highs from 2010 are at $6.10 with the major 38.2% retracement resistance at $6.77
- The 50% resistance is at $8.21 with the key 61.8% level at $9.38
- The weekly OBV has broken its downtrend and the volume surge in the nearby August contract is quite impressive
- The futures have near-term support in the $4.20-$4.50 area
- UNG has just broken its daily downtrend, line d, with next strong chart resistance in the $13 area. The weekly Starc+ band is now at $13.11 with the daily Starc+ band at $12.72
- The minor 23.6% retracement resistance is at $38.21, which is more than three times higher than current levels. The 38.2% resistance is at $55
- The daily OBV has broken out of a bottom formation, having overcome resistance at line f. The weekly OBV (not shown) is also positive
- There is minor support in the $12 area with stronger support in the $11.50-$11.70 area. The daily support, line e, is in the $10.60 area
- The major 50% retracement support, as calculated from the 2010 lows at $19.68, is at $27.84, while the major 61.8% support is at $25.91
- The weekly Starc- band comes in the middle of these support levels at $26.77
- The weekly OBV is still slightly above its weighted moving average (WMA), as volume has been low on the correction. Major OBV support is at line a. The daily OBV (not shown) is just slightly negative
- There is initial resistance now at $31-$31.60 with more important resistance at $33.20
- The 61.8% support is at $38.50 with the weekly uptrend (not shown) in the $38.30 area
- The daily downtrend in the OBV has been broken, which is any early sign that the decline may be over
- The weekly OBV (not shown) did confirm the highs and is still holding above its weighted moving average
- There is initial resistance for CNQ at $41.50 and then at $44.00. A move above $47.32 would confirm that a new uptrend is underway
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