Natural Gas Futures Contract

By root | May 01, 2007 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

COMPANIES IN THIS ARTICLE
Related Analysis
  1. Chart Advisor

    Consider Buying These Uptrending Stocks

  2. Technical Indicators

    Use Volume And Emotion To Tackle Topping Patterns

  3. Trading Strategies

    How to Do the Fundamental And Technical Combo Trade

  4. Mutual Funds & ETFs

    How do I invest or trade market indicators?

  5. Chart Advisor

    Is Now the Time to Invest in North America?

Trading Center