The commodity broke short term resistance at $6.80 as shown below:
Technically, it appears to be the right shoulder of the multi year formation I discussed a few weeks ago.
The market is cautious however since the average realized price for the current quarter is much lower than that which was achieved during the 2nd quarter. Many pure natural gas stocks are stabilizing at lower support levels, but none have given a conclusive buy signal yet.
The preferred strategy might be to purchase diversified income trusts with some natural gas exposure and a good institutional following. Bonavista Energy (BNP.UN.TO) which has a mix of 55% gas, 30% oil and 15% heavy oil gave me a buy signal today
Full Disclosure: I own a position in BNP.UN.TO and my position can change anytime without notice.
The Word
Therealword@gmail.com
