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TFC Commodity Trading Forum

Re: sold natgas calls /Lee *PIC*

Hey Lee. Here is Oct Nat Gas again. See how price runs up to the 20ema as resistance when price is "Trending". See black arrows each time price rallies up to it in downtrends. In uptrends it acts as support but again only when price is 'Trending". Moving averages don't mean much when sideways choppy trading is occurring. That's why I said the other day that at least now price was trending again even if down. Price did hit a new contract low yesterday and price has been trending down since breaking below important support of 4.15. So now just like in the 1st 1/2 of August price is bumping up against the 20ema once again. Same thing occurred in July/10 and Sept/10 as well with the downtrend then. A cross above the 20ema that holds would be positive but only clearing 4.15 and holding above would confirm a change in trend that is meaningful.