Awaiting nat gas's next thrust

marketwatch ^ | Jan. 24, 2014, 3:57 p.m. EST | Mike Paulenoff

[ckilmer]

Natural gas had a wild overnight session, where nearby futures climbed from Thursday's pullback low at 4.653 to a new multi-year high at 4.996.

[ckilmer]

The vast majority of my near-term work is warning me that this morning's new high ended the up leg from the Jan. 15 low at 4.316.

If accurate, this means that we should brace ourselves for a period of a volatile range trading between 5.00 and 4.60 prior to my expectation of another thrust toward 5.20.

It is with this in mind that I watch from the sidelines for a while, looking to re-enter a long position in the U.S. Natural Gas Fund ETF UNG +1.10% toward the lower end of the anticipated trading range.

A bigger-picture view of natural gas shows its potential strength, especially as compared to oil. Since August 2013, let's notice the divergent price paths taken by NYMEX crude oil compared to natural gas. Crude has declined 19% from a two-year peak at $112.24, while nat gas has climbed 56%.

Given the relatively weak global economy, the significant increase in U.S. oil production, and the tightening of nat-gas fundamentals, the chart patterns reflect a profound — perhaps generational — shift in the real and expected fundamentals governing the two commodities. Nat gas is the desired energy source of the future, whereas politicized OPEC oil dominance appears to be in its twilight years.

A climb in nat gas above multi-year resistance at 5.00-5.20 should unleash upside continuation to 6.00-6.20 next, while a break of the January 2014 low at $91.24 in NYMEX oil will point prices toward a $85.00-$82.00 target zone.

Charts on Nat Gas (4-hr & daily w/ Oil) for Fri January 24th, 2014

by Mike Paulenoff, MPTrader

[ckilmer]

ping

[Paladin2]

Baby, it’s cold out there....

[Paladin2]

http://www.youtube.com/watch?v=2_-XMZjWGF4

[Southack]

...and the coal power plants are being shut down.

[RichInOC]

Awaiting nat gas’s next thrust

There’s something down there...and it’s farting.

[doc1019]

Mayhap that is why they call it “natural gas”? ;-)

[Paladin2]

"and the coal power plants are being shut down"

That's k|~ @ |) without thorium electricity generation replacements.

[Tilted Irish Kilt]

Southack :"...and the coal power plants are being shut down."

Thank the "guidelines" of the EPA
and the DOOFUS who put them there !!

[One Name]

We’re being steered like the last bison herds.

Plenty of coal, plenty of oil, plenty of gas- yet we will soon face outrageous energy prices.

Blinded eyes can’t see it happening...

They are slowly boiling a nation of frogs in a pot.

[Trod Upon]

0 finally getting his wished-for skyrocketing electricity rates.

[tdscpa]

Coal and nuke for steady electricity, natural gas for space heating, petroleum for transportation, solar and wind for hobbyists, global warming worriers and politicians.

Don’t let the politicians screw up the allocations/ applications.

[cynwoody]

Plenty of coal, plenty of oil, plenty of gas- yet we will soon face outrageous energy prices.

It's all according to plan.

https://www.youtube.com/watch?v=HlTxGHn4sH4

[DaveA37]

“and the coal power plants are being shut down”...

And propane jumps over $1.59/gallon over night as the U.S. ships it’s “surplus” overseas?

When will they believe their eyes and realize that “global warming” is a myth? 45-50 below here this AM.