Early last year, I noticed something which I have never seen on any other chart before, which is a really magnificent application of the sine wave tool. In this instance, it seemed to follow the long-term path of natural gas beautifully, and it strongly suggested the commodity was in for a fall. Well, it did fall, and with a speed never seen before.
![](https://slopeofhope.com/wp-content/uploads/2023/03/slopechart__NG-640x343.jpg)
Recent lows seem to approximate a bottom, since they roughly match the lows seen over the long-term. We’ve bounced recently, but I’d suggest that if we encounter any other bout of weakness this quarter, it might be a good buying opportunity.
Take a look at the ETF symbol UNG, and in particular the surging volume related to this instrument.
![](https://slopeofhope.com/wp-content/uploads/2023/03/slopechart_UNG-640x327.jpg)
This is even more pronounced with the leveraged symbol BOIL
![](https://slopeofhope.com/wp-content/uploads/2023/03/slopechart_BOIL-640x327.jpg)
It’s impossible to nail tops and bottoms perfectly over such a long time horizon, but it seems very clear that natural gas is just about cheap right now as it was expensive a year ago.