Saturday, June 13, 2009

Critical NatGas level - 1-2-1-2 or triangle?



Natgas looks like it could have completed a 4th wave triangle just inside of the multi-month downward channel. A break outside the channel would be very bullish. However there is a compelling count that suggests a sharp thrust downwards to complete the 5th wave. Use stops at UNG 13.25 if long & reduce positions to limit losses in case of a stee drop!!

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