So for those who didn't stopped out at the last decline 2 weeks ago I suggest holding the position for a few more days (2 to 8 days). I think the big players will use the breakout above 3$ to sell their position to retail traders.
I think this breakout above 3$ will hold today and the traders who are not following the cycles will buy this breakout. But as we are in the 3rd daily cycle the intermediate decline is getting closer and closer. So all who are buying this breakout will be stopping out as we come back to 2.2 - 2.3$ in the intermediate decline.
We might rally 0.5$ from here in 3-4 days.
I think the maximum we can rally is around 3.5$ in the next 4-5 days.
In the blue range you will find multi year resistance so starting to close the long positions above 3.1-3.2$ is good.
Volume is increasing : smartmoney selling, pigs are buying.
And you know at the end who will be slaughtered.
A little consolidation after yesterday's breakout on high volume...
It's not done yet so don't try to short.
I don't want to run into a drawdown so the plan is the next:
I will stop out 50% of the position if we go below yesterday's low.
The other 50% I will stop if we go below the 10 EMA. Otherwise I will hold the position till the end of next week.
I think we will break to new highs one more time in the following 5-6 days and I will start to short from the new highs. I would like to see and RSI divergence at the higher high.
I'm at the sidelines in NatGas
I'm looking for a breakout to enter a short position.