Monday, April 5, 2010

Natural Gas - Long term forecast - Extract from our Special Report

Natural Gas - Long term forecast using Elliott Wave Theory.
 
Elliott Wave Theory is based on the psychology of the masses which forms patterns. I use these patterns as well as the general sentiment in my forecasting. In addition, I take into consideration the behaviour of the commercial traders.
                                                                                                                       
Natural Gas completed its long term decline in an "ending diagonal" in September 2009. The structure is revealed in this daily chart of Natural Gas from 11th of September 2009.
                                          


































                                                                                                                                                                               
All charts in this article courtesy of Stockcharts.com.

A weekly long term chart reveals a multi year expanding triangle.
                                             
The following weekly chart dated the 2nd of April 2010 shows the multi year expanding triangle of natural gas. 
 




































If we assume that wave "c" of B of (x) ended in September 2009, the price target for a full C of (y) wave in the expanding triangle would be USD 24 - 39 long term. This should then take many years to complete.

Natural Gas / Gold Ratio


Natural gas turned up long term relative to gold in early September 2009 and has outperformed gold since then. This was the lowest relative value to gold for decades. Expect the ratio to ................

See more in our Special Report:

- Full analysis of the Elliott Wave Pattern in Natural Gas incl. several more charts

- The sentiment in natural gas and the position of the Commercial Traders, Small Traders and Large Speculators. We let you know the implication of the configuration of these traders.
                                                                                                  
- Fundamental background and the real beneficiaries of natural gas.

- Trading vehicles and how to invest in Natural Gas.

- When to buy - Timing of the bottom of wave 2 in Natural Gas.

- Comparison and ratio analysis of Natural Gas with other assets classes like crude oil, the stock market and natural gas stocks.

Special Reports can be purchases for USD 35. The reports are free for members. You can order the report from our web site http://www.elliottwavetechnician.com/.
 
Geir Solem
http://www.elliottwavetechnician.com/
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