Finally, let’s look at one more chart. Natural Gas.

We list this chart because we have recently made a major low in this energy commodity. The recent low near $2 dollars was at the low PIVOT point price. I’ve also highlighted the high PIVOT point on this long term chart, the $10 - $11 dollar area.
During the month of September, Natural Gas made a major low and a spike to the $5 dollar area brings us to the first trend line on the price chart. We see that beyond this area, the $8 dollar area is the next trend line that price projects.

For those of you watching the Natural Gas market, think of how more confident you might have been in purchasing a Natural Gas investment had you seen where price was on the long term chart. But if you look closely at the chart, you will see that every time we have ever hit this trend line, price has always BOUNCED off it twice. In 94-95 there was a double bounce. The 98-99 low had a double bounce and finally the 01-02 had a double bounce. If history is any guide, the odds suggest we will get a retest of this area once in 2010 and a long term low will probably be established. Armed with this knowledge, the next time Natural Gas gets anywhere below the $3 dollar level, buy with both arms.

Now that we’ve looked at the long term charts we can draw some probable conclusions.

The Crude Oil market seems to have a new pivot low price of $40 dollars. It is in a price channel that projects the range to be in the 65-100 dollar area. The current rally on the monthly charts projects a rally to the 95-100 dollar area.

The Gold market seems to have a long term pivot price of $700 dollars. It is in a price channel that projects the range to be in the 910-1100 area . The current rally on the monthly charts projects a rally to the 1100-1150 area.

The Natural Gas market seems to have a long term pivot low price of just above the $2 dollar area. It is in a price channel that projects the range to be in the 2-5 dollar area. The current rally on the monthly charts projects a pullback to the pivot line one more time before a long term rally gets underway.

Now that we have the long term price perspectives, we can better focus on our medium and shorter term perspectives. But those timeframes all have their own support and resistance channel lines and their respective up and down trends within these longer term channels. If you have an interest in following the trends of these commodities and getting some advice when great set-ups with low risk entries occur, we invite you to visit our website.

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