You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology
Natural Gas – the current rally is at a critical testing point.
Price has recovered sharply over the last four sessions, but we believe that this is a counter-trend upswing of the 20 day cycle and should stall soon. However the recent strength raises the possibility that the 20 week cycle trough has formed early.
Fortunately we have a cycle tool that will reveal the truth of the situation, and soon – right here at the 20 day VTL.
If price crosses cleanly through the VTL, we will know that the 20 week cycle trough has formed, and will be looking for a good move out of the trough. If price stalls at the 20 day VTL, then we will be looking for the 20 week cycle trough to lie ahead, at the nest-of-lows in the first week of January where a level of 2.0 is likely to be tested.
This post was first published on Hurst Cycles Notes.
