It took bloody forever. But natural gas is finally rallying. And, it still has room to run.
We started looking for a rally in natural gas almost two months ago. The chart pattern was projecting a big move… in one direction or the other. And, my bet was for an upside breakout.
The price of natural gas broke lower instead.
As it turns out, though, that breakdown was an exhaustive move. It shook all the bulls out of their positions and exhausted all of the selling pressure.
That marked the bottom.
Since that breakdown, natural gas started moving steadily higher. Then, on Monday, the price exploded.
Take a look…
As I mentioned two months ago, the price of natural gas often makes a short-term bottom in June. Sure enough, that happened towards the end of the month. Now, natural gas is in rally mode, and the price is approaching its highest level of 2020.
If it can get above the $2.20 mark, then there’s really not much resistance until up near last September’s high at about $2.70.
Traders will notice the MACD and RSI momentum indicators at the bottom of the chart are not yet in overbought territory. And, they’re nowhere near the levels reached last September and November when the price of natural gas peaked.
So, it looks to me like there’s more upside to this bullish move.
Traders should use any short-term weakness in the price of natural gas as a chance to buy this commodity.
Best regards and good trading,
P.S. Another rally we’re seeing take place is in the biotech industry. With a global pandemic, there’s a race for a vaccine… leading to massive opportunities in this sector in 2020. We’re at the very beginning of a biotech bull market.
Tonight at 8 p.m. ET, my colleague and technology expert Jeff Brown will be taking you to the epicenter of biotech innovation for his free masterclass. Here, he’ll reveal details of a stock that he believes is the only one investors need to buy right now… due to its potential to soar up to 1,000% in as little as one day.
Do not miss your free seat at Jeff’s biotech masterclass – click here to sign up.
Today we hear from Robert, who shares his thoughts on the recent GDP report…
Mr. Clark: Usually there’s broad participation in stock market rallies – strong advance/decline percentages, and generous participation of most averages and sectors. It is certainly not that situation now. Were it not for the unbelievable money printing by the Federal Reserve, the stock market would be 1/3 cheaper.
We are now playing musical chairs, and there may not be any chairs when the music runs out. It should be incomprehensible that the market is advancing after that abysmal GDP report. We are in for it. Thanks.
What are your thoughts on the recent decline in the U.S. GDP? Are we “in for it,” as Robert believes? Send us your thoughts – and any questions – to [email protected].
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