David Fuller's view Following the last rally above $4.80 I mentioned that I might buy natural gas (weekly & daily) on the next pullback into its base, provided the sequence of rising lows since March was maintained. I bought the August contract this afternoon, paying $4.359 and $4.330, including spread-bet dealing costs of 3¢.

A risk with this trade is that it may extend the base formation over the medium term and that would increase contango costs. Consequently, a modest Baby Steps buy-low-sell-high trading strategy may be most appropriate.