Cycle Trading: Natgas Turning Point
|In the Weekend Updates I discussed how Natgas was in its timing band for a daily cycle low. And that I believe that Natgas formed a larger degree intermediate cycle low in June (and probably its yearly cycle low as well). Therefore our expectation is for Natgas to form a right translated daily cycle low and then continue its intermediate cycle rally.
A bullish engulfing candle is forming on Monday and it looks like Natgas has reached a turning point.
A change in behavior can easily be observed using the 30 minute chart for UGAZ.
Prior to 7/22/19
* The 10 MA crossed below the 50 MA.
* Natgas was in a bearish RSI pattern where overbought conditions quickly reversed.
* Natgas was in a pattern of lows forming below the lower cycle band and highs forming below the upper cycle band.
Beginning on 7/22/19
* The 10 MA crossed above the 50 MA.
* A bullish RSI pattern is emerging where overbought conditions are not quickly reversed.
* Natgas has ended the pattern of highs forming below the upper cycle band. Natgas has printed a lower low on 7/22/19. If Natgas can form a daily swing low on Tuesday that will indicate that Tuesday is day 1 for the new daily cycle.
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