The Chart below is a weekly and as you can see, we are approaching a double top and Make or Break level at 26.5. The last time we were at this same point was in August 2009 and Natural Gas was trading the range of $3.00,which is now 33% higher and Crude was in the $70.00 range, which is now 42% higher. I don't like selling this spread until confirmation comes in and the spread trades back through Upper Momentum, aka +1 Standard Deviation, currently at 23.6 on the Weekly. It is a long time to wait, but it is a safe and conservative way to put the probabilities of momentum on your side to gain exposure.
If you would like to be a little more assertive with this trade, you could move down a time-frame or two and sell when it trades through their respective "Upper Mo's".
Daily Upper Mo is at 25.3
And the Upper Mo on the 240 is at 26.2. If you trade off the potential signal on the 240, please trade with a well defined plan that includes a risk stop, as the longer term does not look attractive.
Be Well
Hemi
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