25, 2002; Is
Natural Gas Doing a Stealth Recovery?
gas futures had a good week with the six-year price rising 6% to $3.38 from
$3.20 (see Chart). Six-year oil
price dipped 2% to $20.63 from $20.98.
another chart, the current daily price of $2.40 is approaching the 200-day
average of $2.80. The 200-day
average has been steadily declining. It
would equal the daily price by mid-May if the daily price were to remain
constant. Any time before then that
the daily price advanced enough to pierce the 200-day average could mark the
confirmation of a new uptrend and a buy point for investors who pay attention to
the momentum of trends.
tying back to the Iraq theme, it would not take much war news to send the daily
price crashing through the 200-day average.
Tying in with our emphasis on MRO, about one third of the value in our
Strong Buy recommendation is related to natural gas.