Apart from whether or not President Obama actually lays out a natural gas program, my technical work on iPath DJ-UBS Natural Gas TR Sub-Idx ETN (GAZ) is warning me to expect higher prices regardless.

Let's notice that the March upleg from 6.85 to 9.05 has returned to its 50% support plateau (this morning), where it pivoted to the upside into a potent rally to 8.35 so far. Right now, my near-term work in natural gas futures, the U.S. Natural Gas ETF (UNG), and GAZ indicates that a new upleg likely started at this morning's lows.

A climb that sustains above 8.40 will be the first confirmation that a new upleg is in progress.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.