Support and Resistance Trading Forum

Next Big Overlooked Market
By:Erich
Date: 1/25/2011, 12:25 pm

Okay, well maybe not everyone has over looked this market but it certainly seems to be on the backburner, especially in light of the crazy gains in the rest of this sector. What's the market? Natural Gas. Natural Gas is the ugly duckling of the Energy sector and as a result is often overlooked. However given that oil based energies aren't getting cheaper any time soon, demand for alternatives is sure to increase and prices are likely to increase as well. And when people start looking for alternatives to the high price of Oil, what's the most comparable alternative? Yep, Natural Gas.

I'm not saying that Natural Gas has to rally, but the charts are showing a market coming off of multi-year lows and it seems as though a bottom is in place. There is a mini-Natural Gas (electronic) available to the small spec and the volume doesn't seem to be too bad. I haven't looked into options yet; however that might be another alternative.

I think it might be time to take this market a little more seriously. Who knows, like the ugly duckling, it might be a beautiful swan underneath!

Something to think about anyway.

Erich

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