Natgas printed its yearly cycle low on December 12th. The drop into the YCL caused the 10 day MA to drop sharply. Natgas consolidated for the remainder of December, which allowed the 10 day MA a chance to bottom and begin to turn higher.
Natgas broke bullishly out of consolidation on January 3rd then delivered bullish follow through into January 9th. .
Natgas is now stretched above the 10 day MA as it approaches a supply area and the likely resistance at 200 day MA. At 18 days, the daily cycle is getting mature which means that Nagas is not likely to deliver a sustained breakout at this point. Once Natgas declines into its DCL we will be watching for a potential breakout during its second daily cycle.
Cycle Trading 
Leave a comment