Bully, Bully, Bully But

Weekly Continuous

In my world of technical analysis price is always the most important factor in trading and nothing is as bullish as a new high close, in this instance the highest weekly close since the week ending 12/21/18. In addition to that high the bullish implications of the breakout is that the continuous one – year STRIP of prices posted its highest weekly close in more than four years going all the way back to the week ending 05/12/17. Discussed here last fall, when solid indications started, the natural gas market was and continues to change its stripes.

That said, the market is a tad spicy in my view as the rally to higher highs, not scene for over two years, has left prices challenging over bought levels in the Daily and Weekly RSI evaluations. The weekly RSI returned to the edge of its historical extreme zone, ending the week slightly higher than week before last (79.83 v 79.21). The last time the sensitive “leading” indicator was higher was the week of the October – Q4 high and only remained at that elevated level for one week. Another indicator is the Bollinger study below:

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