Natural Gas Follow up and Follow Through

click to enlarge charts

We said the other day when first mentioning the Natural Gas market situation that we would be following up. Above are updated daily charts for the October and November futures contracts.

As can be seen there was a nice move upward off this recent low point. So far it has stopped against its .500 point of the most recent and last wave down. Interestingly, the downward correction of this first upthrust held at the .500 support point too.

We have heard on the television financial news station this morning that one of the big investment banks has told its clients that they expect natural gas prices to reach 6.000 by year end. We are not passing judgment on the prediction but thought very worthy of mention.

We have said that the Natural Gas market has been known to be volatile in nature. It is possible, though, that this could be the beginning of a prolonged move. At least prolonged from the viewpoint of futures markets.

Is this something that should be considered for participation? Only you, the individual investor or trader can answer that question. If we can help in determining that for you or in determining possible approaches to this market we would be pleased to do so.

jmajer@mfglobal.com
312 261-7380
800 321-5810

Jeff Majer
Diego Pilar

CB&S Division
MF Global Inc.

Futures and options trading contain substantial risk of loss and may not be suitable for all investors.