Quietly, as we’ve been focused on Gold, Silver, and other symbols, Natural Gas has rallied above the $2.00 level and is starting to break higher again targeting the $2.95 level. The very deep “rounded bottom” pattern that set up in early 2020 presented a very real opportunity for skilled technical traders by setting up multiple, very deep entry points. We wrote about these setups in a May article when Natural Gas broke $2.00 and again a few weeks ago when NG started its upside breakout move.
The current rally as seen in the chart below appears to be stalling near the $2.50~$2.55 level, which goes all the way back to the Fibonacci Predictive Modeling System trigger levels from April 2020 and October 2020 (see the RED LINES on the chart). We believe any stalling price levels near the $2.55 level will breakout to the upside with a further rally attempting to target the $2.95 level. After that level is reached, there is a potential that a further upside price move may take place, but we would urge skilled traders to consider the $2.85 to $2.95 level as the “pull profit” level. Any further leg higher may, or may not, actually happen.
This move from the low $1.50 to $1.65 level in Natural Gas has resulted in a tremendous 70% upside price rally. Another $0.50 rally from current levels would represent a nearly 95% to 100% upside price rally from the ultimate lows near $1.43.
Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!
This last breakout rally may represent a solid 35% to 55% upside price opportunity for skilled technical traders in UNG. When looking at the UNG chart, below, we believe that once UNG crosses the $15.00 price level it will quickly attempt to target the $20 to $22 level if NG rallies to levels near $3.00. It should also be noted UNG has not rallied at a similar percentage price level to NG during this bottom/rally. As such, a breakout move in NG could prompt UNG to rally 70% or more – possibly targeting $22 or higher.
Are you ready for the next big moves in the markets? Want to learn how our research can help you find and execute better trades? We just issued a long-term trade trigger for our investment clients and our active trades are moving confidently into profits. Trading does not have to be a 24/7 job. Learn to target successful trades, enjoy your life, grow your wealth, and let our team of researchers and traders assist you in finding great trades.
Pay very close attention to the risks in the current market so it is important for traders to stay on top of the charts! There will be very big and incredible opportunities for skilled technical traders over that time. Learn how we can help you trade and find success in these markets – sign up for my Active ETF Swing Trade Signals today!
If you have a buy-and-hold account and are looking for technical signals for when to own equities, bonds, or cash, be sure to subscribe to my Passive Long-Term ETF Investing Signals so that you can stay ahead of the markets and rest easy at night!
Chief Market Strategist
Founder of Technical Traders Ltd.
NOTICE: Our FREE research does not constitute a trade recommendation, investment or financial advice, or solicitation for you or any other reader to take any action regarding this research. Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.