Crude oil and unleaded gas exploded to the upside today as we thought, but can Natural gas follow? Look for support and strength
The long term picture
1.Crude oil is expensive and subject to geo political concerns, natural gas is not and is produced domestically.
2.High prices of crude are seeing users change to gas.
3.Gas demand is exceeding long term supply, as old fields run out and new fields are not able to pick up the slack.
4.Summers are getting hotter and increasing demand.
Traders are focusing on these future trends and starting to buy gas, take a look at the charts and see how cheap gas is in historical terms.
With crude oil prices firm, the solution is a switch to gas and this increasing demand and speculative interest could drive prices to far higher levels.
Keep an eye on short term momentum to enter the long side, don't jump too early wait for confirmation.
Caution
If you have not looked at the potential for natural gas, check it out. Candlesticks Predicted $85 Crude Oil - It's Coming True
The flashiest analysts in the flashiest Wall Street investment houses were loudly proclaiming the inevitability of Crude Oil prices at $180 and $200 per barrel. Part of what had been forgotten is that high prices are a cure for high prices.
So even if we still do have plenty of oil, doesn't it behoove us to begin using alternatives now?