On the weekly chart, the GAS may have found a resistant bottom between 1.45 to 1.55. The price action, here, seems reluctant to continue its fall. We should consider that price is close to its historical minimum, which is 1.16, happened between the '91 and the '92. Despite past performance do not represent future happening ( clearly showed by WTI ), it's surely important info that can add value to the aforementioned support level.
In addition to this, it's important to consider also the divergence showed in my technical oscillator (indicator on the bottom)
From a fundamental point of view, I like to consider what the big institutions and speculators are doing. According to COT data, from 16 March 2020 to 20 July 2020, large speculators have raised their long positions on the future by 105.062 long contracts (220.767 to 325.829) and reduce their short exposures by 93.671 contracts (433.755 to 340.084). This bullish movement of contracts (showed on the top oscillator) on the futures market created a divergence with the ranging price action showed on the graph, indicating a pause of the downtrend and a possible reverse.
Last, but not least, I think it is interesting to consider what Warren Buffet has recently done. In fact, an affiliate of Berkshire Hathaway has recently acquired gas transmission and storage assets of Dominion Energy, for a value of 10 millions of American dollars. It has been his first major acquisition since the start of the coronavirus pandemic, and the biggest acquisition in four years. Senseless move or smart one as always?
Long term plan
In sum, a decisive bottom may have been found and big actors in the financial market are preparing for a bullish move. If the price will break the resistance trendline, it could be a good confirmation for an entry on the pullback, which should happen when the price will hit the 2 dollars level.
After the retracement, I forecast a raise to circa 4 dollars, which will be also my TP, a fundamental key level on the monthly chart. Despite this, I would settle down a trailing stop, in order to profit anyway in case of unexpected bearish reverse.
§ § §
This is my first analysis here on tradingview. If you would like to write a feedback and/or opinions, do not hesitate. I do appreciate it ;)
In addition to this, it's important to consider also the divergence showed in my technical oscillator (indicator on the bottom)
From a fundamental point of view, I like to consider what the big institutions and speculators are doing. According to COT data, from 16 March 2020 to 20 July 2020, large speculators have raised their long positions on the future by 105.062 long contracts (220.767 to 325.829) and reduce their short exposures by 93.671 contracts (433.755 to 340.084). This bullish movement of contracts (showed on the top oscillator) on the futures market created a divergence with the ranging price action showed on the graph, indicating a pause of the downtrend and a possible reverse.
Last, but not least, I think it is interesting to consider what Warren Buffet has recently done. In fact, an affiliate of Berkshire Hathaway has recently acquired gas transmission and storage assets of Dominion Energy, for a value of 10 millions of American dollars. It has been his first major acquisition since the start of the coronavirus pandemic, and the biggest acquisition in four years. Senseless move or smart one as always?
Long term plan
In sum, a decisive bottom may have been found and big actors in the financial market are preparing for a bullish move. If the price will break the resistance trendline, it could be a good confirmation for an entry on the pullback, which should happen when the price will hit the 2 dollars level.
After the retracement, I forecast a raise to circa 4 dollars, which will be also my TP, a fundamental key level on the monthly chart. Despite this, I would settle down a trailing stop, in order to profit anyway in case of unexpected bearish reverse.
§ § §
This is my first analysis here on tradingview. If you would like to write a feedback and/or opinions, do not hesitate. I do appreciate it ;)
Comment:
Correction: Warren Buffet invested 10 BILLION, not million. Sorry for the typo.
Comment:
The rise of temperatures is supporting the raise of the GAS's price.
In fact, high temperatures push people to consume much more energy for their AC systems.
Most power plants produce energy through GAS-powered turbines. The latter generates a quarter of world electricity (and a significant part of global greenhouse gas emissions and thus global warming).
In fact, high temperatures push people to consume much more energy for their AC systems.
Most power plants produce energy through GAS-powered turbines. The latter generates a quarter of world electricity (and a significant part of global greenhouse gas emissions and thus global warming).
Comment:
Price reached the resistance area around the area of 2.15. From here it might correct, going down to the area between 1.93/1.82. If this support area will hold, it could be possible to open a long position, as soon as the price will bounce back to its bullish move from the aforementioned support area.
A possible confirmation filter could be the rupture of the resistance area of 2.15/2.20.
A possible confirmation filter could be the rupture of the resistance area of 2.15/2.20.
Comment:
Price seems to have started its process of correction.
The possible key levels to enter the market
-2.155
-2
-1.95
A possible drop under the level of 1.83 will nullify my trading idea.
The possible key levels to enter the market
-2.155
-2
-1.95
A possible drop under the level of 1.83 will nullify my trading idea.