Natural Gas has been one of the most profitable trading assets of the year offering great returns to our long-term portfolio. On a long-term scale though (1W time-frame on this chart) it has starting to form a peak pattern, which we have seen previously in the past 20 years.
I've plotted the Sine Waves on the chart to more efficiently illustrate NG's long-term cycles. Currently it is within a Bull Cycle having formed a Golden Cross (MA50 crossing above the MA200) in June. However after every 1W Golden Cross since 2000, the market made a Top shortly after. We have three very clear cyclical occasions as you see on the chart. On top of that the current 1W RSI sequence is very similar to these past top formations.
Our thesis is that Natural Gas has or is very close to forming a long-term Top and we are starting to take sell positions on that market.
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Great chart, any concerns about the inventories on record low? We might have a setup which will push nat gas prices even higer and it would still fit within the story of your chart. Any thoughts?
Traderwell
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your golden cross delay a bit
KidEg0
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why can I not reproduce the same weekly chart as you have here on my end? crosses are not the same on my charts etc.