Update: Targets Hit; Unwinding | $NGAS #naturalgas
Friends,
Yesterday, we warned of a probable rally into three potential targets, graded by probability. Today, WSJ mentions: "Who isn't sick of winter? Natural-gas traders: on.wsj.com/1gNexaS". We believe that some unwinding has come due ever since we hit all targets - Here is a playable review of the trade using TradingView's replay feature:
Within a few hours, all targets were hit, and since reaching the highest target (TG-Hi = 6.215 - 19 FEB 2014), price consolidated, then fell to break back below its 6.000 (currently printing 5.999 as of this writing).
While further bullish advance is possible, we are now looking at some unwinding, paying particular attention to recent targets acting as potential support. In fact, TG-2 = 5.883 has already lent support one 4-hour candle ago. Added to potential supportive contenders are the bearish momental lines, in particular the one which price broke through right at the time of release of the targets yesterday (blue arrow).
OVERALL:
A break below that bearish support would probably herald a directional revision towards a bearish down course, although we would rely preferable on our own bearish reversal confirmation signal. For now, the directional bias remains neutral, in light of targets hit, subsequent consolidation and more recent bearish reaction.
Cheers,
David Alcindor
TradingView alias: 4xForecaster
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Follow me on #Twitter: @4xForecaster
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Yesterday, we warned of a probable rally into three potential targets, graded by probability. Today, WSJ mentions: "Who isn't sick of winter? Natural-gas traders: on.wsj.com/1gNexaS". We believe that some unwinding has come due ever since we hit all targets - Here is a playable review of the trade using TradingView's replay feature:
Within a few hours, all targets were hit, and since reaching the highest target (TG-Hi = 6.215 - 19 FEB 2014), price consolidated, then fell to break back below its 6.000 (currently printing 5.999 as of this writing).
While further bullish advance is possible, we are now looking at some unwinding, paying particular attention to recent targets acting as potential support. In fact, TG-2 = 5.883 has already lent support one 4-hour candle ago. Added to potential supportive contenders are the bearish momental lines, in particular the one which price broke through right at the time of release of the targets yesterday (blue arrow).
OVERALL:
A break below that bearish support would probably herald a directional revision towards a bearish down course, although we would rely preferable on our own bearish reversal confirmation signal. For now, the directional bias remains neutral, in light of targets hit, subsequent consolidation and more recent bearish reaction.
Cheers,
David Alcindor
TradingView alias: 4xForecaster
-----------------------------------------
Follow me on #Twitter: @4xForecaster
-----------------------------------------
