Natural Gas Stock NGAS ready to move on Friday

You’ve heard me talk about commodities and inflation. And you have also heard me mention the natural gas stock NGAS. The fact that the CRB index has broken out, and crude oil is moving fast and furious seems to indicate for the moment anyway that commodities are hot, very hot.

I believe that the Natural Gas Commodity Trading stock NGAS is ready to make its move on 2/25/2005. I also believe that the Natural Gas Price chart is building up for a breakout.

The Natural Gas price chart has broken a downtrendline with volume. What more can I say? It is starting to look bullish. And based on my analysis I see that NGAS the stock is ready to breakout, probably Friday morning. The virtual trade here is entry between 5.20 and 5.30 with stop loss set at 5.00. The objective is about 6.8. This looks like a very attractive set up to me with. Assuming entry at 5.20, maximum downside risk here is -3.8%, with first potential upside of about 30%.

All I can say is that commodities are on fire. Not all of them, but plenty of them are. You just have to know where to look and be picky.

The chart of the natural gas commodity trading stock is shown below:

TC

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