October Natural Gas is down 3 cents at $2.947 this morning as I write. With no threatening heat or hurricane looming, natural gas will most likely continue to erode on price. The enclosed chart shows that the downward price trend continues evolve unabated staying right along with the declining 5 day exponential moving average. Notice on the bottom chart, that the purple ADX line is rising steadily reaching 33.90 today. Now the ADX is high enough to make us start to take notice. Now, let’s watch for a convergence in the red and green lines followed by a roll over in the ADX line for a possible buy signal. For now, stand aside.

Sep. 1, 2009
David Hall