Natural Gas shows Sell Signal
Trading commodity futures and options involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources.
Natural gas futures fell today (2/24) making its lowest low since mid-November.
Today's move lower gives me a fresh sell signal for April natural gas on the daily chart. This is the second sell signal natural gas has given me since the trend changed to the downside at the beginning of February. This commodity is also showing a sell signal so far this month on the monthly chart.
The U.S. Energy Department released a report today stating that U.S. gas stockpiles declined less than expected last week which may be adding pressure on natural gas prices. This report also asserted that the Energy Department, "Expects near-record-high inventories to continue through most of 2011."
Many of the energy markets are showing possible topping formations. If these markets break down it may weigh on natural gas prices.
Natural gas has already confirmed to me it may be in a longer-term downtrend. To review what I consider a "long term" trend watch Larry Baer's Long Term Trend Confirmation Video: http://www.youtube.com/watch?v=tBjFsIdtztw
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Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed.
