Natural gas has *potentially* breached through a massive resistance level that marks the falling wedge pattern's upper limit. I say potentially because we need more follow through first as confirmation because the price might sink back within the pattern and keep grinding lower until the real break occurs. On the daily charts, we definitely have the positive divergences in play which means the trend will change. Price, like a compressed coiled spring, will jump out to the upside. On that note, I will be watching for developments on the hourly charts: specifically any formation of a bull flag pattern which could be the catalyst to propel us higher. The same divergences were in play on the hourly charts. As of now I have exited all my natural gas positions but once this rally cools off, then we could see a move higher.
For this trade, we will be using UGAZ. Watch for a back-test of the wedge or a bull flag pattern forming and breaking out on the 1H time frame. Both will act as confirmation for this long trade.
For this trade, we will be using UGAZ. Watch for a back-test of the wedge or a bull flag pattern forming and breaking out on the 1H time frame. Both will act as confirmation for this long trade.