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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (47738)	4/13/2012 2:04:05 PM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69827

I don't really see a bottom for natural gas based on the chart. There is no historical precedent for the price of gas being this low. In addition there is some strong resistance in that $2.50-$2.60 range. There looks like there is sufficient volume today to get a short term bounce. The strength or lack there of in the bounce may indicate whether further weakness is ahead. This kind of damage usually takes time to work itself out. I would want to see the moving averages start to converge as a result of the price moving sideways for an extend period of time before looking for any kind of bottom. As a counter point the natural gas index which I am assuming is a normalized price adjust index is showing some support in this area and technically looks due to bounce. I don't think we get any kind of sustained rally till the shoulder season is over though. Keep in mind I don't follow the natural gas sector very closely. When you are referring to XCO are you referring to the stock?