...and the selloff volume today is ridiculously low... Generational Low for Gas By Mike Paulenoff, MPTrader.com
Natural gas is in the midst of the establishment of a generational low, when everything appears extremely bleak fundamentally. This is a classic commodity capitulation period. From my perspective, the extended falling wedge type pattern once again is in a position to do serious damage to the well-entrenched shorts -- that is, if the price structure finds a way to hurdle 2.015-2.030 in the nearest futures.
Tomorrow morning we get another round of natural gas inventories, which has the potential to be a short-covering catalyst amidst the slightest supply-demand provocation. The technical set-up argues that the price structure once again is at a near-term inflection point.