Gas has been trending up since hitting a seven year low on Sept 3, 2009. Market drivers are forecasted cold weather, the recovering economy, declines in gas production, and higher oil.
Futures market prices predict the market is now back to its previous long term up trend as each successive future month is priced higher that the previous month. As cold weather and falling production begin to reduce the stockpile of natural gas available to the recovering economy the price for gas could jump significantly by year end.
Indeed many professional investors are moving money into the commodity markets such as natural gas. These speculative investments have already lead to recent price volatility and this well may gain momentum as we move through 2010. Medium term technical indicators such as the 50 day moving average vs current price, or the 20 - 100 Day MACD oscillator and the 50 day parabolic time/price all are showing buy signals. Overall the medium term technical indicators average 75% on the Buy side.
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