The Technical Reasons Why Natural Gas Prices are Set to Skyrocket

Image of blue stove flameFrom Chris Vermeulen: During the last stock market top in 2007-2008 the price of natural gas completed a basing pattern (bottom) and broke out and had a massive rally. Will this happen again this time around?

Based on the stock market stage analysis, market sentiment, and the price action of natural gas, it appears the stock market is topping and natural gas is on the verge of a breakout and rally.

The price of natural gas moves in strange ways, and I mention this to subscribers when its taking place. I found that on when there is fear in the stock market and stocks are down along with almost every other asset class (this is rare), that natural gas is typically the only asset and/or commodity trading higher those days. I’m not 100% sure what to make of it, but I have seen this repeatedly over the years.

See the weekly chart below of the SP500 index and natural gas

NG4cst

Natural Gas Forms Bottoming Pattern and Basing Pattern

NG4cst2

Earlier this week I recorded my conversation with HoweStreet 
talking about natural gas, gold and oil – LISTEN HERE

Natural Gas Trading Conclusion:

In short, no matter if this correlation in stock price and natural gas exists or not, the fact of the matter is that stocks are showing signs of a significant top, while natural gas appears to be bottoming.

The United States Natural Gas Fund, LP (NYSE:UNG)

UNG-2016-08-11

This article is brought to you courtesy of TheGoldAndOilGuy.com.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico