Chart of the day: New highs for Nymex gas?
The year of 2016 has been a gas for natural gas futures prices on the New York Mercantile Exchange, having rallied since March and trading in the fourth quarter almost at the psychological US$4 per million British thermal units – the highest in two years. Obviously, the energy industry is looking ahead at what a new US president might do. All has been well and good, but will this continue? Probably not, and therefore traders should start looking for signs of a new interim high forming, something that may have started with last week’s shooting star candle. This happens to take place at the measured target based on the 61 per cent Fibonacci projection taken from the height of the irregular inverted head-and-shoulders base, coinciding with a 50 per cent retracement of losses since 2014. Be careful!
Nicole Elliott is a technical analyst