Mar 18,23-NG-Turnaround this week? YES!
As we know, NG has stayed down and storage is at an all time high - U.K. NG is at an 18 month low. Weather has been exceptionally warm in the U.S. the last 8 weeks, hence the huge amount in storage.
My thinking is the following:
There is a quick cold snap this week where it will start to warm up again on Fri,,,
It's almost the end of this contract...most of the time, price moves up as contract end nears - not always, but a lot of the time.
Where is the bottom? I believe in and around 2 is the bottom. It's going to be hard for price to STAY below 2 for long. Sure, it might dip down to 1.5 for a day or two, then right back up again around 2.
Therefore, I am choosing 2 or maybe 1.9 or 1.8 as a good spot to go long - even if it's just until friday this week, then get out. Hopefully price goes up to 2.5 and I take my 500 or so points profit and run.
I might be wrong, but that's how I'm going to play this week. I will be watching price action closely Sun night as NG comes online. If price is flat or turns negative slightly, I will lower my entry price to 1.9 or 1.8.
Stay tuned this week for more posts. Stay safe and trade smart.
Heiko
My thinking is the following:
There is a quick cold snap this week where it will start to warm up again on Fri,,,
It's almost the end of this contract...most of the time, price moves up as contract end nears - not always, but a lot of the time.
Where is the bottom? I believe in and around 2 is the bottom. It's going to be hard for price to STAY below 2 for long. Sure, it might dip down to 1.5 for a day or two, then right back up again around 2.
Therefore, I am choosing 2 or maybe 1.9 or 1.8 as a good spot to go long - even if it's just until friday this week, then get out. Hopefully price goes up to 2.5 and I take my 500 or so points profit and run.
I might be wrong, but that's how I'm going to play this week. I will be watching price action closely Sun night as NG comes online. If price is flat or turns negative slightly, I will lower my entry price to 1.9 or 1.8.
Stay tuned this week for more posts. Stay safe and trade smart.
Heiko