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.






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Tickers in this Article: ECA

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