Correction in Progress for Nat Gas ... But How Deep?

The enclosed chart of nearby natural gas futures shows the powerful and significant uptrend that has developed off of the secondary low at 2.575 in late August.

I have demarcated all of the corrective lows with borders around their price labels. Let's notice the beautiful series of higher-lows that has demarcated the Aug-Nov uptrend.

That said, the two most important in the series are 1) yesterday’s at 3.626, and 2) Nov 12 at 3.470, which, if violated, will argue strongly that nearby natural gas is heading into a much deeper, corrective process that any of the prior pullbacks.

In fact, a break of 3.470 will point towards a gap-filling expedition into the Sept 26 breakaway up-gap zone between 32.00 and 30.50.

For now, however, the technical set-up for natural gas and the U.S. Natural Gas Fund ETF (UNG) is relatively healthy as it completes the corrective process off of the Nov 22 high at 3.933.

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