When MoneyFlow is OUT

Higher Price Highs v. Lower MoneyFlow Highs

EIA showed another NatGas injection. Inventory is again higher. Price was up. But as for traders, Money is clearly flowing OUT of NatGas.

This is just ONE rendition of divergence delivering the “tell” of weakness in Wave 4.

But never mind my opinion. A picture is worth a 1000 words. Here’s the Money Flow (below). It’s thought provoking, at least.

As we near an inevitable end of Wave 4 in the 7-month long NatGas downtrend, divergence is predictive of Wave 5 down to complete the trend.

Whooph often asks: What always precedes any swing or reversal? Divergence.