I have not looked at Natural Gas in a while. As a mid-westerner now, I use it in my house to cook and for heat during the winter. But with August being the hottest month ever on record in Cleveland and being an old school Weber kettle griller with charcoal in barbecue season, I have not even seen that blue flame in a while. It is still hot out here but it is now time to pay attention.
The chart of Natural Gas went through a bottoming process over the winter. it came up off of a low in March, making a peak in April. It consolidated from there through May before turning higher again. That move brought the price from about $2 to $3 in just 6 weeks. Since that high at the start of July it has been consolidating again. If you colored the candlesticks blue it would look just like that flame above.
But this consolidation with a bit of a rounding to the upside to it is reaching a point where it could break to the upside. Turn up the gas. With the October Futures contract trading at $2.97 as I write, it is only 3 cents away from a break out. That would target a move to at least $3.60. It has support for a break and run from positive momentum indicators with the RSI in the bullish zone and rising and the MACD crossed up and climbing. Time to start watching that blue flame go higher.
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