Weather. Everyone Friday seemed to be talking about weather, and maybe all weekend. I now see why jackasses like to say NG has nothing to do with weather. If not for any other reason than to get everyone riled up. So Friday… Dec pricing crossed above the upper line of my channel and then fell and closed out he day below that upper line. Being that it was Friday, I was distracted and I missed it. This happens.
From what I could tell weather forecasts shift a little more bullish over the weekend and it was suspected the market might give us a positive response. It is not surprising to see we got a gap down and prices continued to fall from there. Now what?
Seems we are still forming the right shoulder of a head and shoulder pattern. The lower green line that goes across the screen could be considered the neckline and the price has fallen below there. Are we off to $2.45ish? I can’t say, but any weakness in the market (especially weakness in weather forecast) and prices should fall.
There are a couple of areas of support on the daily chart. Once at $2.59 and I would say strong support at $2.57. This is 75MA and the low for the last few weeks. I would almost be interested in buying DGAZ now at $117 with a stop at say $115. I don’t feel very strongly about this so I’m staying out today. Thanks for listening.