Monday, July 9, 2012

Commitment of Traders Confirms Natural Gas Reversal

Commercial Trader Selling Leads to Key Reversal

Commitment of Traders Report identifies commercial traders as main sellers on natural gas futures rally.

The natural gas market is awash in excess supply. The warm summer has helped to push current stock through the pipeline but the fundamental picture remains little changed. New technologies have simply led to a glut of natural gas on the market.
The expectations for the natural gas futures market can be clearly seen in the actions of the commercial traders. They were the ones building the base as it traded down to $2 and below and they are primary sellers now that the market has rebounded.
Building on their success in this market we will also employ the technical key reversal in our creation of a new short trade. We will place our protective buy stop above Friday’s high at 3.060. Nearest supprt is $2.500. I expect the market to trade closer to $2.000 or below.

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This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

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