Buy Natural Gas: Trader
Natural gas had a huge Monday, rising nearly 4 percent. So will it get back above $4 anytime soon?
We traded to a three-month low on Friday, and have now found some solid support. We've only started the summer, when demand increases.
There are also a bevy of more specific reasons why natural gas looks good right now. New homes are getting built, and if the heating and cooking in those homes is not powered by natural gas, then the electrical power from power plants is. And speaking of which, California's nuclear plants need to be replaced, and it will be natural gas that steps in. The bottom line is that if we can cheaply produce natural gas in the United States, there will be thousands of conversions to natural gas every day.
On the chart, natural gas will find support at $3.70, then $3.65, and under that, $3.50. Resistance is at $3.84, then $3.90, and finally $4.