Tuesday, October 2, 2012
Natural Gas Has Reached Bottom Says Brandt
Natural gas has reached a bottom according to commodity expert Peter Brandt, who say over the next several years natural gas prices should trend up.
Brandt says the significance of reaching a major bottom is the low price is now in place.
He says natural gas has been in a bear trend for 6-1/2 years, citing the fall in price from 15.780 in December 2005 for a nearby futures contract, down to 1.902 as of April 2012. That constitutes a plunge of 88 percent.
Brandt sees the first target in sight as breaking the 6.000 mark.
His recommendation is to buy on dips in the 10 percent to 15 percent range.
Of course there will be ups and downs during this upward trend, which is why pullbacks should be considered buying opportunities, as over time natural gas prices appear poised to start a good run up in price.