One of the most feared trades on the market is natural gas. But if you look at it from a historical perspective, it’s at a point where it finds support and begins to move higher, despite supply-demand issues.
In most years – with the exception of 2011 – natural gas has run off similar lows. In 2009, after falling to $3.25, it ran to $6. In 2010, it ran from $3.25 to $4.60. In 2012, it bounced from $2.10 to $4.40. And in 2013, after falling to $3.25, it found support and rallied to $6.50. – Profit Alert Daily
Better yet, technical points are telling us this is insanely oversold. MACD is on the floor. And RSI is near its 30-line, where it has typically bounced.
While the herd runs from the trade out of fear, we’re using it as a long-term buying opportunity in Inside Value Trader.