Natural Gas Futures Contract

AAA

For today's chart we've chosen to take a look at the natural gas continuous futures contract because it is trading within a well-defined ascending triangle. This chart is a good example of how the price action of a security will consolidate within the barriers of the pattern while traders wait for a break above the resistance. A move above the $8 level, known as a breakout, will likely be used by many traders as a signal of a relatively quick move back toward the 52-week high of $9.

It will be interesting to see how this bullish formation will affect companies with large exposures to natural gas such as Encana (NYSE: ECA) because a move higher in the price of the commodity may be the fundamental catalyst needed to push this group of stocks higher.

You May Also Like

Related Analysis
  1. Chart Advisor

    Four Stock Market Swing Trade Ideas

  2. Stock Analysis

    Comstock Resources Declares Production, Reserves for 2014 - Analyst Blog

  3. Chart Advisor

    Use This ETF To Trade The Swiss Franc

  4. Chart Advisor

    3 Energy Related Stocks Poised For A Pop

  5. Chart Advisor

    Do Good Buys Remain Among Beaten-Down Financials?

Trading Center