The prices of natural gas are taking unnatural movements.
Miller Tabak’s Matt Maley told CNBC’s “Trading Nation” on Thursday that after a rally of nearly 40% over the past month – an outward movement unusual for any commodity – the charts are now showing warning signs.
Natural gas prices fell about 3.5% on Thursday after climbing nearly 4% in the previous session.
“While I’m optimistic about the long term, I think the thing has gotten overbought,” said the company’s chief market strategist.
Male said when natural gas prices rose on Wednesday, their relative strength index jumped to 80, indicating a “near-term high” for most of this year.
“On its weekly charts, it is also above 80, and it’s the second highest buy in a decade,” Maley said.
“It doesn’t mean that the bull market is over for this product. I think when you get an overbought weekly chart the pullback is going to be more than a few days, and [Thursday’s] I think the withdrawal will not be the end, ”he said. “We will have to see a setback that will last more than a few days. “
The commodity found another long-term bullish but short-term concern at Nancy Tengler, chief investment officer at Laffer Tangler Investments.
In the same interview, he said his company recently launched a green energy product for its customers, who own natural gas stocks but cover them with oil.
“I think we’re on the verge of a setback, but in the long run it’s a relatively clean solution for energy, and I think we’ll continue to see the strength of natural gas from a perspective. fundamental in the years to come, ”she said. . . .
Disclaimer
.
