Has Nat Gas Entered a New Recovery Upleg?

Natural Gas has exploded to the upside today in reaction to a much less than expected build in inventories during the past week, which has goosed prices above key, near-term resistance at 2.82 into what my pattern work argues is a new upleg in the aftermath of the July correction from 3.00 to 2.62.

If reasonably accurate, then today's lift-off into a new upleg projects next to a target zone in the vicinity of 3.20, and thereafter, perhaps in reaction to sustained extremely-high summer temperatures, to 3.40-3.50.

Only a sudden downside reversal and breach of 2.75 will neutralize today's upside breakout.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!