Gas has been making some serious gains the past weeks and now I think it's reached a point of correction. The ML of the TC has had multiple attempts of breaching and so far has failed to do so. The RSI is over bought across multiple TFs and then there's a the R2 monthly fib pivot. IF I'm right, I'll be following the blue fibs down to the 50% and looking to TP my short around there, SL is slightly above the R2.
I like your analysis. From technical point of view it's consistent with what I see. What makes me also a supporter of this scenario is that there are also (short-term) fundamental reasons to short it. This is what I mean: Natural gas (also oil) will suffer due to heavy demand destruction triggered by two reasons: high prices and transition to renewable energies. Why I think it's a short-term effect? Because the latest IPCC report was not yet assimilated by the markets. The report, once processed by the public and the governments, might trigger massive and quick emergency-like investments in regeneratives.
Mr-R-Sole
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@IP_aus_Ruit, nice fundamental analysis bro! I tend not to bother with fundamentals as mainly I don't understand them and also because everything is in the charts :p
IP_aus_Ruit
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thx, @Mr-R-Sole! You are right about that. Usually I also rely only on the technical view. For short-term trades there is nothing better than that. Wish you good trades...
Natural gas (also oil) will suffer due to heavy demand destruction triggered by two reasons: high prices and transition to renewable energies. Why I think it's a short-term effect? Because the latest IPCC report was not yet assimilated by the markets. The report, once processed by the public and the governments, might trigger massive and quick emergency-like investments in regeneratives.