Natural Gas looking good

In addition to moving over all 3 of its major moving averages in the past 6 months, natural gas has made a series of higher lows since bottoming in April of this year. Additionally, it moved over its 200day moving average today with a short term oscillator moving higher from an oversold condition. If price can sustain itself over the 200day for a few days, it has a chance of moving significantly higher towards 3.50.

The big caveat is that natural gas has been in a strong bear trend for some time, and the last time it acted similarly with moving over all 3 of its major moving averages after a sustained downturn (see red highlighted area), price eventually failed to improve and another downtrend ensued. All buy signals should come with a warning sign...but given the flammable nature of natural gas, this one should come with an exclamation point!

Along with the strength in natural gas comes strength in natural gas stocks...watch high short interest stocks prepared to move or already moving over a major moving average on above average volume for squeeze/extensions.