Cycle Trading

Back on 12/21 we took a look at how things were aligning for NATGAS. Both a daily swing low and a weekly swing low had formed. But we still needed confirmation of new cycles.

NATGAS has now delivered confirmation.

NATGAS closed above the declining trend line last Wednesday which confirmed the new daily cycle. NATGAS continued to rally, closing above the upper daily cycle band on Monday which signals that the intermediate cycle low has been set.

So now we begin to anticipate leaving behind the yearly cycle low.

December is month 14 for the yearly cycle. That places NATGAS deep in its timing band to print a yearly cycle low. Since December already has formed a lower monthly low, the earliest a monthly swing low can form will be in January. And the bullish monthly reversal that is being formed will help to ease the parameters for forming a monthly swing low. Currently, a break above 8.83 will form a monthly swing low and signal a new yearly cycle for NATGAS.