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BrandonBeylo
Apr 7, 2017 1:27 PM

Head and Shoulders Formation in Natural Gas 

Henry Hub Natural Gas FuturesNYMEX

Description

Looking at the 1D chart for Natural Gas Futures, right about now you can see the formation of a head and shoulders. The left shoulder and the head are already formed, now it's just a matter of seeing where the right shoulder goes. I remain neutral on this setup because I am waiting on an inflection movement either up or down.

If it breaks the resistance from the left shoulder, Natural Gas Futures could test the highs of the the head (around 4.00). However, if it breaks down at this resistance level, I would then go short with a stop loss at 3.35 after seeing confirmation of downward trend. Then, for my profit target, I would look at first taking profits in 2.80, and then set my next profit target for 2.60.

All the best,
RC
Comments
jojofang0901
Beautiful trade setup, thank you for sharing your view. I have similar idea as well on this pair.
BrandonBeylo
@jojofang0901, Thank you! Great chart analysis! I will look to add designated profit target zones on my next chart, makes it easier to see the logic!
jojofang0901
@rockvuecap, sounds good :)
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