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Natural Gas Prices Fall to 1-Month Low -- And the Waves Are There to "Catch" It
An example of how EWI's Energy Specialty Service uses objective Elliott wave patterns -- NOT weather patterns -- to anticipate near-term moves in natural gas
By Nico Isaac
Mon, 13 Aug 2012 16:30:00 ET
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In his 2004 book "Prechter's Perspective," EWI president Robert Prechter provided the following insight into the main falsehood of "fundamental" analysis of the financial markets:  

“News is irrelevant to trends. Sometimes it appears to fit a day’s trading range so perfectly that everyone ‘knows’ what the cause of the day’s move was. Other times, the market does the opposite of what everyone would have expected. This unreliability proves that news is not determining the trend..."
 
Case in point: As July 2012 rolled into August, the mainstream natural gas experts pinned a very bullish tale on one KEY fundamental factor: The ongoing heat wave blistering across the United States. Here, the following news items from August 1 set the scene:
 
·         "US Gas: Futures Climb As Heat Wave Expected To Persist" (Washington Post)
·         "Natural gas futures over $3 as forecasts of extreme heat boost prices to yet another 2012 high." (Wall Street Journal)
·         "Hot weather outlook again boosts natural gas. Prices have been climbing as temperatures rise. As long as we see strong cooling demand, prices are going to go higher." (Associated Press)
 
YET -- despite the existent above-normal temperatures, natural gas prices turned down. By the closing bell on August 2, natural gas plunged 7.9% in its biggest single-day drop in 3 years. And since then, the market has slashed 15% off its value to land at its lowest level in one month.
 
Robert Prechter goes on to add this to his observation above:
 
"The only thing that never changes is the dynamics of social psychology, [which unfolds in Elliott wave patterns on price charts.]"
 
EWI's Energy Specialty Service's intraday natural gas forecast at 10:53 AM on August 2 revealed a major, bull-quashing event and foresaw a renewed commitment to the downside via this update:
 
"As it stands, I'm looking for the market to trend on down in an impulsive manner to bolster my confidence in the idea that the wave __ decline is underway. The next big downside hurdle is 2.720 -2.706 area."
 
Now, the next chart from Energy Specialty Service's intraday analysis of natural gas moves things into the present and shows how prices have followed their Elliott script to the letter, while totally abandoning their "fundamental" one. 
 
 
 
So, what are you waiting for? Get objective analysis of natural gas's next big move in the latest Energy Specialty Service intraday AND daily wave counts and charts.
 
 
How Can You Tap into Energy Market Volatility?
 
 
Let EWI's most specialized forecasting service for global energy markets alert you to opportunities happening right now in crude oil, natural gas and other major energy markets. Subscribe today and get instant access to comprehensive intraday and daily forecasts that can help you make smarter trading decisions.
 
 
 
 
 
 
 
 
 
 
 

 

Tags: Elliott wave, fundamental analysis, natural gas, Robert Prechter, Prechter's Perspective, Robert Prechter
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