Natural gas prices are making some unnatural strikes.
After a virtually 40% rally within the final month — an unusually outsized transfer for any commodity — the charts at the moment are flashing warning indicators, Miller Tabak’s Matt Maley instructed CNBC’s “Trading Nation” on Thursday.
Natural gas costs fell by about 3.5% on Thursday after climbing practically 4% within the earlier session.
“Despite the fact that I am bullish long run, I simply assume the factor has grow to be overbought,” the agency’s chief market strategist mentioned.
When pure gasoline costs spiked Wednesday, their relative energy index reached 80, a degree that has “signaled near-term tops” all through a lot of this yr, Maley mentioned.
“On its weekly chart, it additionally acquired above 80, and that is the second highest, the second-most overbought it has been in a decade,” Maley mentioned.
“This doesn’t suggest that the bull market is over for this commodity. I simply assume that once you get a weekly chart that is that overbought, the pullback’s going to final for greater than a few days, and [Thursday’s] pullback I believe will not be the top of it,” he mentioned. “We’ll must see a pullback that lasts for greater than just some days.”
The commodity discovered one other long-term bull however near-term worrier in Nancy Tengler, the chief funding officer of Laffer Tengler Investments.
Her agency lately launched a inexperienced energy-based product for its purchasers that owns some pure gasoline shares however hedges them with oil, she mentioned in the identical interview.
“I believe we’re due for a pullback, however long run, it is a comparatively clear answer to power, and I believe we’ll proceed to see energy in pure gasoline over the approaching years from a basic standpoint,” she mentioned.
https://www.cnbc.com/2021/09/16/why-natural-gas-could-extend-its-pullback-according-to-charts.html | Why pure gasoline may lengthen its pullback, in line with charts