Best time to invest in gas now, according to...

Best time to invest in gas now, according to article:

http://www.marketoracle.co.uk/Article15238.html

" Much as past great market opportunities, at the low no one wants to buy for a multitude of reasons. However taking a look at the long-term charts, you do not have to be a genius to arrive at the conclusion that Natural Gas is cheap, the only way a future Natural Gas spike to the upper ranges of many multiples of the current price is not possible is if Natural Gas suddenly became an redundant energy resource, which given that it is a far cleaner form of energy than other fossil fuels seems extremely improbable!

Remember Natural gas is not a stock therefore its not going to go out of business to ZERO, nor is it likely to be displaced from the market place by new technology during the next decade at least.

Natural Gas Fundamentals

High prices bring on stream new supply, low prices bring about reduction in supply and investment, the longer Natural Gas trades at higher prices the greater will be the eventual new supply and subsequent crash in prices. The longer Natural gas trades at ultra low prices the less the forward supply investment and thus the greater will be the eventual spike higher in Natural Gas prices. What this suggests is the best type of price action for commodities is that of highly volatile highs and lows where sustained trends tend to resolve to extraordinary spikes in the opposite direction. The current Natural Gas price trend has been that of a sustained downtrend, which is primed to resolve to much higher prices to eventually more than the normal range. Off course this would also require Natural Gas position holders to ensure they are ready to distribute INTO such a spike else like many novice investors they may end up giving back most of the gains on the way down!"