Natural Gas Makes a Bottom, Commodity Report by Top Financial Newsletter Profit Confidential

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Natural gas has hit decade lows, because of the mild winter and a glut of new supply hitting the markets due to new techniques like fracking, but Sasha Cekerevac, contributor to Profit Confidential, thinks that recent developments in the energy markets show that perhaps there is some slight flicker of light at the end of the tunnel when it comes to natural gas.

Natural Gas Makes a Bottom, Commodity Report by Top Financial Newsletter Profit Confidential

Natural Gas Makes a Bottom, Commodity Report by Top Financial Newsletter Profit Confidential

It appears that natural gas might be in the process of bottoming since the current price range has been used as support in January and March this year, as well as price is now above the 50-day moving average.

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Natural gas has hit decade lows, because of the mild winter and a glut of new supply hitting the markets due to new techniques like fracking, but Sasha Cekerevac, contributor to Profit Confidential, thinks that recent developments in the energy markets show that perhaps there is some slight flicker of light at the end of the tunnel when it comes to natural gas.

“The excess amount of supply of natural gas being dumped into the energy markets is driving down natural gas prices and filling up storage facilities,” says Cekerevac. “But, as electric utilities transfer from coal to natural gas generation, this has started to use up some of the supply in the ground.”

In the article, Technical Analysis of the Natural Gas Market, Cekerevac notes that there are several technical indicators that appear to show that natural gas is making a bottom.

“Natural gas came off a new low at the end of April below $2.00. This comes after the move down from last summer,” says Cekerevac. “It appears that natural gas might be in the process of bottoming since the current price range has been used as support in January and March this year, as well as price is now above the 50-day moving average.”

Cekerevac also notes that there was a divergence between the price of natural gas and the Relative Strength Index as well as the moving average convergence/divergence.

“All the signs point to a rebound in natural gas prices, most likely up to the 200-day moving average,” says Cekerevac. “A break below $2.20 would be a bearish sign and a retest of the lows is most likely at that point.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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