Monday, September 24, 2007

No hurricane, but technically bullish

Here is a chart of NOV07 natural gas which became the front month K today. There seems to be a potential inverse head and shoulders formation, indicating a bottoming. Moreover, relative strength has been increasing steadily while natural gas made multi-year lows. A rough hurricane season and colder than expected winter can also facilitate a move through $8 to test the $9 level.

No comments: