The pullback in Crude Oil has been step and deep, but our thesis for an overall recovery has not been invalidated yet. We’ve gone just below an expected Fibonacci retracement level of between 38.2-61.8%, but as long as it stays above a 76.4% level ($39.42 on the futures contract) then we are OK and should expect a reversal up soon.
Natural Gas is much clearer. In the last update we predicted support between of $2.642- $2.582 and that level held and price is now trending strongly upward with Fridays close at $2.876. All signs point to Natural Gas hitting our target zone of $3.409 – $4.318.
We had called out an entry on WMB at $22.25 and so far, this is looking like a great trade. Fridays close was $23.97 and good entries are still possible for this trade. Stop is still at $19.67 and target price is ~$34.00.
That’s it for this week. I will keep the updates coming. Be sure and let me know if you have questions or comments.
Thanks!
Dean Jenkins
MBA from the University of Washington. Dean is an expert in Technical Analysis, Money Management, Elliott Wave Analysis and founder of FollowMeTrades.com.
