![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202306\/20230622-JMU-01_nkr412.png\")
<\/p>\nAfter chopping back and forth for the past few months, the price of natural gas looks poised for a big rally.<\/p>\n
Natural gas peaked last summer when it traded near $9.50 per million British thermal units (MMBTU).<\/p>\n
Today, the “widow maker” trades near $2.50. That’s a 74% decline over the past nine months.<\/p>\n
And, it explains why traders call natural gas the “widow maker”…<\/p>\n
It’s notoriously hard to trade. And it’s prone to outsized moves – which often don’t comply with any sort of logic.<\/p>\n
Nonetheless, like moths to a flame, traders are attracted to the action in natural gas.<\/p>\n
And, right now, that action looks like it’s turning bullish – just as the seasonal patterns turn bullish as well.<\/p>\n
For whatever reason, the price of natural gas tends to rally during the summer.<\/p>\n
In 2020, for example, natural gas rallied from $1.60 to $2.70. That’s a 69% gain in just over two months. The price doubled during the summer of 2021. And, last year, natural gas rallied from $5.50 at the start of July to $9.50 at the end of August.<\/p>\n
It looks to me like we could see an even stronger rally in natural gas this year.<\/p>\n
Look at this chart…<\/p>\n
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After declining sharply at the beginning of the year, natural gas has spent the past few months chopping back and forth inside a relatively tight trading range between $2.10 and $2.60. This action is building up energy to fuel the next big move – which I suspect will be higher.<\/p>\n
All of the various moving averages have coiled together. And, they’re in a bullish formation – with the 9-day EMA above the 20-day EMA, and the 20-day EMA above the 50-day MA.<\/p>\n
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Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n If natural gas can close convincingly above the resistance line of the consolidation pattern – at about $2.60 – then there’s no real resistance until about $5.00. In other words, natural gas looks poised for a 100% rally.<\/p>\n Granted… nothing in the markets is ever guaranteed. And, natural gas is called the widow maker for good reason.<\/p>\n But with the seasonal factors turning bullish, and with the chart pattern looking bullish as well, I like the odds for a strong rally in the price of natural gas.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n <\/p>\n![\"Signature\"](\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\")
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