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Is Natural Gas Forming A Double Bottom?

Published 12/10/2014, 12:44 PM
Updated 07/09/2023, 06:31 AM

Natural gas prices are rapidly approaching the swing-low that occurred on October 28, 2014. In technical-analysis parlance, that's known as a 'double bottom'.

Natural Gas: Daily

Technically, though, it might not be an exact double bottom, as the current low the market appears to be making is a bit higher than the October 28 low. And that could be interpreted as a pattern of higher lows, which would also be bullish.

For reference, the following chart compares oil and natural gas. While oil has really sunk since sanctions against Russia were imposed at the end of July, natural gas has only dipped mildly. Some argue this is because oil is being intentionally pushed down as a political strategy of weakening countries that are deeply oil dependent (such as Russia, Iran and Nigeria). If that's true, presumably the disconnect could continue until we see signs of oil bottoming.

Oil Vs. Narural Gas

What do you think?

Latest comments

yea im long /NG 3.69, i think major reversal is coming, along with the bullish report coming tomorrow morning
natural gas is a scam trade cuz
natural gas is a scam cuz
many of us have been screaming double bottom on the NG forum for that last few days. nice to see some analysis.
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