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What's Odorless, Colorless -- and Just Gained 28%?
Have you looked at natural gas prices and UNG lately?
By Vadim Pokhlebkin
Thu, 10 May 2012 15:30:00 ET
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Quick story. Back in 1998-1999, when a gallon of regular at a local QT gas station cost 67 cents (I kid you not), a colleague of mine here at the office was talking to an old buddy, who told him this: 

"When a barrel of oil costs less than a 12-pack of beer, you know it's time to buy."
 
Boy, do I wish I had listened. Crude went from the low of just over $10 a barrel in 1998 to almost $150 in 2008. Of course, then oil promptly fell to just over $30 a barrel -- but that's another story.
 
Today's story is natural gas. Let's let this picture do the talking: 
 
 
 
This is a chart from our Energy Specialty Service (with Elliott wave labels erased). After seeing this huge decline, the "natural" question is: Can natural gas go any lower, or are we seeing a repeat of the 1998 situation in crude?
 
Keep in mind that natural gas prices have already rallied from their April low of $1.982 to as high as $2.531 -- a gain of 28%.
 
UNG, a popular natural gas exchange-traded fund (ETF) rose from $14.25 in April to $18.11 now -- a 27% gain.
 
Is it time to buy? Or are lower lows on the way?
 
Our Energy Specialty Service brings you forecasts of both natural gas and UNG daily, plus intraday updates for natural gas (as well as crude and Brent).
 

 
Energy Specialty Service: Comprehensive intraday and daily forecasts for the active trader
 
You get timely and actionable forecasts for crude oil, natural gas -- as well as USO, UNG and XLE -- and other global energy markets in EWI's specialized energy forecasting service.
 
 
 
 

Tags: crude oil, Elliott wave, Elliott Wave trading, futures trading, natural gas, online trading, options trading
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