Cycle Trading: Natgas Goes On Sale
|We discussed back on August 29th how Natgas closed above the 50 day MA.
Prior to August 29th Natgas had been in a daily downtrend characterized by lows forming below the lower daily cycle band and highs printing below the upper daily cycle band. But a change of character happened on August 29 and Natgas closed convincingly above the 50 day MA. It also closed above the upper daily cycle band which ended its daily downtrend and began a daily uptrend.
Natgas ran into the 200 day MA on Tuesday and then formed a swing high on Wednesday. Wednesday was day 31 for the daily cycle placing Natgas in its timing band for a daily cycle decline. So at this point a close below the 10 day MA will confirm the daily cycle decline. Natgas should break below the daily cycle trend line as it seeks out its daily cycle low. Once that happens, if Natgas forms a swing low above the lower daily cycle band then it will remain in its daily uptrend and trigger a cycle band buy signal.
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