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This Commodity Still Has Room to Run
By Jeff Clark, editor, Market Minute
It took bloody forever. But natural gas is finally rallying. And, it still has room to run.
We started looking for a rally in natural gas almost [two months ago](. The chart pattern was projecting a big move… in one direction or the other. And, my bet was for an upside breakout.
The price of natural gas broke lower instead.
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As it turns out, though, that breakdown was an exhaustive move. It shook all the [bulls]( out of their positions and exhausted all of the selling pressure.
That marked the bottom.
Since that breakdown, natural gas started moving steadily higher. Then, on Monday, the price exploded.
Take a look…
As I mentioned two months ago, the price of natural gas often makes a short-term bottom in June. Sure enough, that happened towards the end of the month. Now, natural gas is in rally mode, and the price is approaching its highest level of 2020.
If it can get above the $2.20 mark, then there’s really not much [resistance]( until up near last September’s high at about $2.70.
Traders will notice the [MACD]( and [RSI]( momentum indicators at the bottom of the chart are not yet in overbought territory. And, they’re nowhere near the levels reached last September and November when the price of natural gas peaked.
So, it looks to me like there’s more upside to this bullish move.
Traders should use any short-term weakness in the price of natural gas as a chance to buy this commodity.
Best regards and good trading,
Jeff Clark
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Reader Mailbag
Today we hear from Robert, who shares his thoughts on the recent GDP report…
Mr. Clark: Usually there’s broad participation in stock market rallies – strong advance/decline percentages, and generous participation of most averages and sectors. It is certainly not that situation now. Were it not for the unbelievable money printing by the Federal Reserve, the stock market would be 1/3 cheaper.
We are now playing musical chairs, and there may not be any chairs when the music runs out. It should be incomprehensible that the market is advancing after that abysmal GDP report. We are in for it. Thanks.
– Robert
What are your thoughts on the recent decline in the U.S. GDP? Are we “in for it,” as Robert believes? Send us your thoughts – and any questions – to feedback@jeffclarktrader.com.
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