Monday, September 24, 2007

Got Gas?

I am bullish on Natural Gas

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I am told that the October contract will expire on Sept. 26/07, so any swing trades in Natural Gas should use the November contract. That's a bit unfortunate because the lower volume in the November contract means wider spreads which means it is much harder to get into a long position at the right price. Oh well, it just means more opportunities to practice patience.

First, another look at the daily chart:

First order of business is to see if it can stay above the $7 level. If it can do that (and so far, things are looking pretty good), then I will look for a long position to play a move up to the Sept. 18 swing high @7.35.

And here's a look at the hourly chart:

I really like the series of higher lows made after what looks like exhaustion selling on Sept 20/07.

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