Natural Gas Trading Above Key Long-Term Moving Average

In our Sept 25th Energy Update we pointed out Natural Gas, which is the largest source of power for the generation of Electricity declined this year to very low historical levels and consumers had an opportunity to secure rates with a supplier not only below their local utility’s present rates, but more importantly far below where rates will likely average for at least the next 36-months.

But we pointed out it was important to note this opportunity would likely be short-lived since as shown in the following chart in our April 10th Energy Update waiting for slightly lower prices was not in your best interest:

Since Sept 25th Natural Gas rallied from $2.64 to today’s opening of $3.37, and is now 68% higher than where it was on Apr 10th, and most important we are now above the 200-Day MA. This long-term moving average is closely followed by traders as the likely long-term trend.

After reading the April 10th  Energy Update those who heeded our warning that rates were likely moving higher and secured a fixed rate nailed the lowest rates of the year. But with that being said, please don’t despair that you may have missed a major opportunity. From a long-term perspective, this cycle of higher Natural Gas prices is likely still in its early stages: