As expected, April Natural Gas dived sharply lower last week. The question posted last weekend in our analysis of the sector was, when the sharp spike down occurs, is it the beginning of the intensification of the trend or will a potential “stop run” end the decline and set the stage for a reversal of trend?
The Natural Gas sector's equities pulled back sharply last week. Many of these equities rest on support. We will not purchase these stocks until a clear reversal is signaled in the underlying commodity. The chart above reflects the levels needed to be retaken to support a long term trend reversal. Aggressive traders could begin accumulation of these stocks upon a recovery of $4.295. More conservative investors should wait for a close over $4.45 in April Natural Gas prior to investment in the sector.
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Natural Gas Sector: April Nat Gas close today critical
Started by
autobot
, Mar 22 2010 08:44 AM
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