Friday, August 30, 2013

Natural Gas: Charts Show Patterns Within Patterns

This chart (daily) is the one we used to get on the right side of the up move from $3.24 to $3.60 (currently $3.62 and stalled):


the thinking being that prices could rise from that Aug. 8 spike low to ~$3.60 and still be in a down trend.
So, how to recognize the next turning point?

The 5-minute 1-hour chart shows a 4-day series of higher lows that define the short-term trend:

and which trendline will have to be broken before any decisive action shows up on the daily chart.

So, what might be the actuator for a reversal?

The temperature at the NYMEX is going to be a couple ticks chillier than average:

It's ridiculous I know but it's amazing how often it works out and by working out allows you to use all that power in your Baby Crays or NVIDIA Tesla supercomputers to watch cat videos: