Natural Gas, Again

When I talked about natural gas a couple of weeks ago I didn't expect my prediction of a turnaround to come true quite so quickly. But there it is: six trading days later it breaks out of its technical downward range. This is very encouraging, although it is not an assurance that the price rise will continue.

I am continuing to ride my bet with shares in the (nameless) producer I mentioned in that earlier article. It and other companies in its sector are already showing some excellent price appreciation. There will be twists and turns to come - not a straight line up - and I will be following closely. Price is bound to reverse at some point, and I'll be looking at that 50-day EMA to hold as natural support. On a fundamental basis, provided that investors persist in believing that the economy is recovering, or at least that a recovery is in sight, natural gas will do well.