The chart of Natural Gas (NATGAS) shows price continuing down the 1×1 angle which is the inverse slope of the bull market of 2002-2005. Price “may” be in a bottoming process but there is no way of knowing for several months. I am not expecting any bullish runs in the price of natural gas any time soon based on this chart.
The chart of West Texas Intermediate Crude (WTIC) shows price moving up off the January low at the same slope at it moved during the final leg of the bull market from 2007-2009. The correction that began in early January dropped at four times the slope of either bull move on this chart. My assumption is that the trend of Light Crude is down.
The Energy Select Sector SPDR (XLE) has dropped at four to eight times the slope of the 2002-2008 bull market. Price is below the 50% range level. I expect a test of the the 2009 low at a minimum.
Charts courtesy of Stockcharts.com
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.