In an interview on Breakout, Charles Nenner gave his input on the price movements of oil and natural gas, where he sees the recent roles being reversed as oil continues to drop in price while natural gas has jumped from $1.80 about a month ago to $2.70 now. Nenner was very close to calling that exact, where he saw natural gas dropping to $1.70 before it rebounded.
From the end of April, oil has plummeted over 20 percent, while natural gas has climbed over 30 percent during the same period.
Going forward, Nenner, who tracks momentum and cycles in the two industries, said he doesn't see crude stopping it decline until November, where sees it going to as low as $68 a barrel. It makes one wonder if the Obama administration isn't manipulating the markets, as it is voting time right when oil is supposed to hit that level.
It also makes one wonder why natural gas is soaring, as that will ultimately be a positive for the anemic and sometimes unethical, so-called green energy sector, as it'll make it more competitive with natural gas, which has drawn much of the shine away from those boondoggles surrounding the very expensive alternative energy sources.
For natural gas, he sees it staying weak into the latter part of July before continuing to climb in price. In other words, traders and investors still have an opportunity to get in on natural gas before it continues to climb.
If you're not buying natural gas futures, Nenner recommends Encana Corp. (NYSE: ECA) as his top stock pick in the sector. He recommends waiting until July to get into it.
Nenner doesn't see oil picking back up until November.
Encana closed at $19.40, dropping $0.82, or 4.13 percent.
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