We've been keeping a close eye on Natural Gas for the last several months as it collapsed in price. What interests us the most is that Nat Gas stocks have not been hit nearly as hard as the underlying.
Now that the major triple support has been hit on Nat Gas (just above $7.00) it could offer a great risk/reward on some of the shares, not the commodity itself, although that still looks an attractive buy.
We like the stock ECA and have mentioned it before in this post. It looks a juicy setup with the stops being taken out below the important low (circled in red).
If ECA were to rally for here we think $50 could be easily achieved and with stops below $40 that's at least a 3:1 risk/reward setup if not 4:1.
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