Natural Gas continues to grind higher off of last Thursday’s positive reaction to the inventory-data point.
Increasingly, my near- and medium-term work indicates that a new upleg commenced in the aftermath of the September double-bottom pullback low in the vicinity of 3.52.
This low projects next into the 3.86-3.87 area, perhaps just prior to this Thursday inventory report, when the market once again will be positioned either for upside acceleration towards 4.20, or a post-news down-spike that revisits 3.65-3.60 support.
The majority of my work tells me to prepare for the bullish scenario in nat gas and its U.S. Natural Gas Fund ETF (UNG), and use any knee-jerk, down-spike reaction to news to add to long positions.
Only a decline that breaks 3.51 will wreck the developing bullish technical set-up in natural gas.