Is natural gas putting in a bottom? Technically, it appears so. Fundamentally, supply is great, but natural gas may be gaining more traction as an alternative fuel source as oil is over a $100 a barrel and as nuclear is put under the microscope due to the events in Japan.
Figure 1 is a weekly chart of the i-Path Natural Gas ETN (symbol: GAZ); the pink and black dots are key pivot points, and these are areas of support (buying) and resistance (selling). It appears that GAZ will be closing the week above two key pivot points or prior resistance levels. 8.21 and 7.80 were resistance, but they will become support provided prices end the week above these levels. The next resistance levels and possible price targets would be 1) the down sloping 40 week moving average; 2) a key resistance level at 9.74; and 3) then the key resistance level at 11.51.
Figure 1. GAZ/ weekly