Natural Gas
Is currently at strong support and we should expect a new rally higher soon. We are at strong support and the next rally will be wave iii of 3 and should take us higher towards 5.97. Remember that I always expect wave iii to extend and at 5.97 wave iii will be 1.618 times longer than wave i of 3. If Things doesn't pan out as expected, when should we begin to worry? If we break below 3.57 it would not be the best of sings, but only a break below 3.05 will invalidated my bullish Count.
Thank you very much!
ReplyDeleteCJ
I agree natural gas is undervalued and will see a rise in the near term. Can you take a look at the technicals for KWK (QuickSilver Resources), it is a natural gas play. The stock traded over 40+ per share in 2008 when nat gas prices peaked. Today it is trading for 2.29. Per the company website, the enterprise value is approx $2.55 billion. Hence, it is trading at only 16% of its enterprise value. It seems a big upward move would be coming in this stock as well if natgas prices rise in a wave 3 to around 6 or so.
ReplyDeleteAs a follow up- ignoring any technicals. Based upon the enterprise value KWK (QuickSilver Resources) would have a per share value of approximately 14-15 per share. It is currently trading at 2.30.
ReplyDeleteIn addition, to follow up on the technicals of natural gas and the potential wave 3- legendary investor Jeremy Grantham believes natural gas prices could triple per a value investing conference.
Hence, if you put all of the pieces together, its seems natural gas should be in good position to rise in the near term.
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