Another Shot at Cracking the Natural Gas Code

In addition to a down 200-point open coming on the Dow, most commodities are also showing weakness as the latest trade war headlines likely serve as a convenient excuses for more profit-taking into the weekend. 

But natural gas is higher, and for our purposes we are all the more enticed by some exploration firms which have flashed more than just an individual sign here or there of turning things around for the better. 

Three plays, CHK RRC SWN, all have improved on various technical levels in recent weeks as natty itself firmed up. And if that progress continues we may very well have a specific bull thesis for a segment of the energy complex this summer.

On the SWN daily chart, below, you can see how significant the $5 level has been not just since 2017, but actually if you zoom out the chart it was major support back in late-2015/early-2016, too. 

So if these wildcatters are to improve and offer quality setups, level like these should find buyers eager to step into any weakness under them going forward in order for bulls to finally crack the natural gas code. But it sure seems to be a promising setup, especially with the immense progress CHK has already made itself.