NATURALGAS - 4hrs ( Short Trade 3400PIP ) Down to ALL-TIME LOWS
🔹Hello traders, Let's review and go over analysis and strategies for NATURALGAS As you can see, the price has fallen tremendously in the last few days. And today on the 22 January there has been a gap in the market, which I'm expecting the market to fill out in the next upcoming days. After that I'm expecting price to go down to all time low 1.5240$ and the entry point for this trade. Would be at 2.0550$ and the target area would be 1.7120$ this is also a pattern target area. Which after this, I'm expecting a huge pull to the upside from the Bulls because this is a bullish buy side.
🔹NEWS : According to NatGasWeather, a frigid cold front sweeping across the U.S. resulted in very strong demand through Sunday. However, forecasts for a much warmer pattern from January 22 to February 2 led to plunging natural gas prices due to expected light demand. The upcoming week presents a bearish outlook for U.S. natural gas prices. The primary driver behind this sentiment is the anticipated warmer weather pattern, which is expected to significantly reduce heating demand. Historically, natural gas prices are sensitive to changes in weather forecasts, particularly during the winter months when heating demand peaks. The shift to warmer conditions, as predicted by NatGasWeather, suggests a substantial decrease in consumption, thereby exerting downward pressure on prices.
Additionally, the recent data indicating a recovery in gas output, coupled with the smaller-than-expected withdrawal from storage reported by the EIA, contributes to this bearish perspective. An increase in supply, especially during periods of reduced demand, typically leads to lower prices.
🔹Reasons : As you can see this is major turn level weekly, meaning that if price goes below this area right where price is now Then I'm expecting price to bounce back up into that zone and to go down even further. and the daily low and the weekly low has already been broken. This is a sign for traders to go short in the market This is also a break of a Q1 and Q2 and Q area. This is also year low break. The current year low is placed at 2.0580$ When year lows get broken, we are expecting a new year low even further down then the previous year low. For natural gas this is about 3400PIP. Now for the pattern breakout. As you can see, price has clearly been following this, ABCD pattern Now it's just a question of time before price reaches its target for this pattern which would be about the all-time low for natural gas at area 1.5240$
🌐 Educational : But what is a Q low?
In trading and finance, the term "quarter" is often used to refer to a quarter of a year, which is a three-month period. The financial calendar is typically divided into four quarters, each lasting three months, and these quarters are denoted as Q1, Q2, Q3, and Q4. Here's how they generally break down:
🌐Q1: January 1 to March 31
🌐Q2: April 1 to June 30
🌐Q3: July 1 to September 30
🌐Q4: October 1 to December 31
Companies often report their financial performance on a quarterly basis, releasing quarterly earnings reports to update investors and analysts on their financial health and business operations. Traders and investors may also use quarterly data to analyze trends, make investment decisions, and assess the overall economic outlook.
It's important to note that the fiscal year for some companies may not align perfectly with the calendar year, so their Q1, Q2, Q3, and Q4 may not correspond exactly to the calendar quarters.
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🗨️Always trying to come up with more quality setups for you guys!
⚠️Warning ⚠️
before you take this trait or take just my word, go look something up Look up some news That could be coming. More info about it Tomorrow And remember, risk management always 1 : 3 always more gains than losses!
✅Advice ✅
I think that every traveler should start doing is writing down The reasons for their setup on the charts If you can't write 5 down, don't take the trade This is coming from me personally After I did this, I saw major improvement in myself and in my trading so do it!
🙌Have a phenomenal trading day!
🔹NEWS : According to NatGasWeather, a frigid cold front sweeping across the U.S. resulted in very strong demand through Sunday. However, forecasts for a much warmer pattern from January 22 to February 2 led to plunging natural gas prices due to expected light demand. The upcoming week presents a bearish outlook for U.S. natural gas prices. The primary driver behind this sentiment is the anticipated warmer weather pattern, which is expected to significantly reduce heating demand. Historically, natural gas prices are sensitive to changes in weather forecasts, particularly during the winter months when heating demand peaks. The shift to warmer conditions, as predicted by NatGasWeather, suggests a substantial decrease in consumption, thereby exerting downward pressure on prices.
Additionally, the recent data indicating a recovery in gas output, coupled with the smaller-than-expected withdrawal from storage reported by the EIA, contributes to this bearish perspective. An increase in supply, especially during periods of reduced demand, typically leads to lower prices.
🔹Reasons : As you can see this is major turn level weekly, meaning that if price goes below this area right where price is now Then I'm expecting price to bounce back up into that zone and to go down even further. and the daily low and the weekly low has already been broken. This is a sign for traders to go short in the market This is also a break of a Q1 and Q2 and Q area. This is also year low break. The current year low is placed at 2.0580$ When year lows get broken, we are expecting a new year low even further down then the previous year low. For natural gas this is about 3400PIP. Now for the pattern breakout. As you can see, price has clearly been following this, ABCD pattern Now it's just a question of time before price reaches its target for this pattern which would be about the all-time low for natural gas at area 1.5240$
🌐 Educational : But what is a Q low?
In trading and finance, the term "quarter" is often used to refer to a quarter of a year, which is a three-month period. The financial calendar is typically divided into four quarters, each lasting three months, and these quarters are denoted as Q1, Q2, Q3, and Q4. Here's how they generally break down:
🌐Q1: January 1 to March 31
🌐Q2: April 1 to June 30
🌐Q3: July 1 to September 30
🌐Q4: October 1 to December 31
Companies often report their financial performance on a quarterly basis, releasing quarterly earnings reports to update investors and analysts on their financial health and business operations. Traders and investors may also use quarterly data to analyze trends, make investment decisions, and assess the overall economic outlook.
It's important to note that the fiscal year for some companies may not align perfectly with the calendar year, so their Q1, Q2, Q3, and Q4 may not correspond exactly to the calendar quarters.
🎁Please hit the like button and
🎁Leave a comment to support me!
🗨️Always trying to come up with more quality setups for you guys!
⚠️Warning ⚠️
before you take this trait or take just my word, go look something up Look up some news That could be coming. More info about it Tomorrow And remember, risk management always 1 : 3 always more gains than losses!
✅Advice ✅
I think that every traveler should start doing is writing down The reasons for their setup on the charts If you can't write 5 down, don't take the trade This is coming from me personally After I did this, I saw major improvement in myself and in my trading so do it!
🙌Have a phenomenal trading day!
Comment:
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