I know plenty of Nat Gas charts are out there with the recent surge, but I wanted to take a moment to look at the bigger picture. Most charts I've seen are focused on the daily action, so for those looking to establish longer term positions, this is one commodity that looks ripe for building positions.
I've provided a rough estimate of the likely price movement with the black arrows, but the main thing to note is the pop through the down trend line from 2011. It's already been basing quite nicely, and now it's above the 50 Week MA.
A gap is left at the $20.10 area, so that is likely to be filled in the near term. If it's tested and holds, that's a great place for an entry.
Bottom line, the risk is mainly to the upside with initial Fib targets between $25 - $32 and a 200 Week MA coinciding with those horizontal prices. Don't rush into this one.
Look into Call options on dips to support areas and even consider selling Out of the Money Puts to back into shares when prices hit support.
I've provided a rough estimate of the likely price movement with the black arrows, but the main thing to note is the pop through the down trend line from 2011. It's already been basing quite nicely, and now it's above the 50 Week MA.
A gap is left at the $20.10 area, so that is likely to be filled in the near term. If it's tested and holds, that's a great place for an entry.
Bottom line, the risk is mainly to the upside with initial Fib targets between $25 - $32 and a 200 Week MA coinciding with those horizontal prices. Don't rush into this one.
Look into Call options on dips to support areas and even consider selling Out of the Money Puts to back into shares when prices hit support.