is in the overbought zone showing divergence with price.
Momentum is approaching "the red zone" typical close to the cycle tops. I expect either a sharp drop on Monday or a re-test of the Friday level before the drop. I expect the first drop to at least go down and test the trend-channel wall at the 78.6 FIB level.
The price is stretched far above the 200 MA.
I start normally with a small position (20-25 % of total planned amount), then add at each higher resistance zone depending how significant the resistance zone is. The next resistance zone is very significant given the cycle structure of our current run. There I will add a bigger position (40 %). I placed 25 % of the position at the blue resistance top line. If it reaches the above zone, I will be 65 % invested in the position.
No question that there is a lot of upside potential in NatGas over time, but its current cycle is very mature and price stretched and overbought. It has only been more overbought 5 times the last 4 years.
Watching price action at this point.