XNGUSD Bull Pennant Pattern Short then Long
XNG has had a big week with a big bullish momentum move into a symmetrical triangle
and then a breakout into a bull flag pattern to finish out the trading week. A Bollinger Band
squeeze as the symmetrical triangle was underway preceded the breakout. PRice crossed the
POC line of the volume profile where trading volume , liquidity and volatility all are the
highest Equities and equity funds like BOIL, KOLD, UNG, UNL, LNG had corresponding moves.
The Luxalgo ECHO indicator, a predictive AI tool, suggests that from here XNGUSD will retrace
5% or so perhaps targeting the mid/basis line of the Bollinger Bands and then resume its
upward trend. the retracement would be 50% of the uptrend which started the morning of
5/18 which was a 10% move. The indicator is predicting the uptrend resumption for
5/22. By extension, equity instruments that mirror natural gas prices presumably will have
similar moves. I conclude that my profits achieved in BOIL options after the big move
should be prtially taken off the table to buy some KOLD calls or BOIL puts instead to hedge
for the prediction of the algorithm tool.
and then a breakout into a bull flag pattern to finish out the trading week. A Bollinger Band
squeeze as the symmetrical triangle was underway preceded the breakout. PRice crossed the
POC line of the volume profile where trading volume , liquidity and volatility all are the
highest Equities and equity funds like BOIL, KOLD, UNG, UNL, LNG had corresponding moves.
The Luxalgo ECHO indicator, a predictive AI tool, suggests that from here XNGUSD will retrace
5% or so perhaps targeting the mid/basis line of the Bollinger Bands and then resume its
upward trend. the retracement would be 50% of the uptrend which started the morning of
5/18 which was a 10% move. The indicator is predicting the uptrend resumption for
5/22. By extension, equity instruments that mirror natural gas prices presumably will have
similar moves. I conclude that my profits achieved in BOIL options after the big move
should be prtially taken off the table to buy some KOLD calls or BOIL puts instead to hedge
for the prediction of the algorithm tool.
Trade active:
XNGUSD is now rising from the retracement low. One lot trade long leveraged 1:100 looking for 2hr scalp
Trade closed manually:
KOLD calls closed out with 35% return overnight.
Trade closed manually:
Took profits before close of market volatility. Assess on the reopen.
Trade active:
AI Trend predictive indicator is suggesting a near-term BOIL price action down to $3.5 by Tuesday afternoon then up to $4.00 by Wednesday mid-day. I will place
call options 3DTE at $3.00 to cover that overnight trade.
call options 3DTE at $3.00 to cover that overnight trade.