Natural gas prices continue to push lower as spring flowers. The absence of strong economic sanctions by Russia on eurozone secession of Crimea also means that Nat gas supplies to Ukraine and Russia continue to flow freely, and there is no panic in the market for purchase and inventory of stocks in case there is a tight supply. The combination of these two factors has allowed Nat Gas hitting a recent low of 4.47, ignoring the bullish inventory numbers reflected by EIA weekly report that went to -59B -48B vs. expected cubic feet. This is a clear sign that the market is extremely bearish and other sales activities should be expected going forward.
Time Table
From a technical point of view, breaking 4525 support and Bottom channel suggest that the bearish momentum can be accelerated. It also allows us to ignore the bullish cycle signal seen on the Stochastic indicator that this indicator tend to be unreliable during strong trends such as now.
Table Daily
The same could be said about the stochastic indicator on the daily chart, which is in the oversold area, but as the hourly chart, bearish momentum is strong and bullish momentum is strongly altered with the broken rising trend line. In addition, the Double Top pattern is now in play, suggesting that the bearish ultimate goal can be as low as 3.32. So just because the stochastic readings are oversold does not mean that the bearish momentum is finished, even if a bullish decline is favored ahead, we could still see prices at least to go further lower in from mid-December - mid January consolidation range before a withdrawal is seen
links :.
USD / JPY - Dollar Spanks Yen After Yellen Rate Comments
EUR / USD - Euro slide continues after Yellen Notes
AUD / USD - US Dollar Surges After Remarks Fed
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