Nat Gas - Bottom Is In

A major bottom is significant for two reasons, both equally important for trading.

1. The low price is in place
2. The market should trend higher for an extended period of time

Thus is the case for Natural Gas. The weekly chart below shows that Nat Gas has been in a bear trend for 6-1/2 years. During this time the price of the nearby futures contract has declined from a high of 15.780 (Dec. 2005) to a low of 1.902 (Apr. 2012), a decline of 88%. I think this qualifies as a bear market.

The daily chart now shows a decisive and massive complex H&S bottom in the March 2013 (and all other) contract(s).

A multi-year bullish trend has begun. The initial target is the 2010 high above 6.000. I must point out that trends are all subject to backing and filling. Nat Gas will be no different. The market has already had a good run. Traders should look for periods of weakness (10 to 15% dips) to be a buyer.

I AM NOT A FAN OF UNG (the ETF). It is possible that the price of futures could advance with the price of UNG actually declining.

http://peterlbrandt.com/natural-gas-now-this-is-what-a-bottom-looks-like/