With over supply, demand going down i believe a rising wedge is being built into formation. You could see that it already broke the upper trend line which would be a signal for a downfall quite soon. Also, even though trend is up, you could see bulls were not really in control with huge resistance and brute force for every push up. It’s only a matter of time...
$BOIL Target 26.76 for 32.08% Or next add level is at 13.76 So far so good… I sure do love trading Natty On the far right of the chart is my Average (Grey) Current Target (Green), and Next Level to add (Red) Percentage to target is from my average. I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and...
Natgas Above $2.70 can become a SQUEEZER
Natural gas has been under pressure for quite some time. As a whole, the energy sector has been beaten down severely and is historically cheap. I do not believe this will last. We can certainly have another big drop and even take out March lows but I wouldn't count on it. There are some BIG BIG BIG changes heading our way and we will look back on these days...
Here's some areas for your entrys and exits.
As of now, expecting lots of chop within a range between $1.50 and $1.83 all Summer. Supply is abundant and demand is slow however, bankruptcies from 25-year low prices will soon take chunks out of production and demand may have bottomed already. Hot weather forecasts in high demand states (the South and Northeast) should also pop prices. Risk to the downside is...
$ung $ugaz $dgaz $boil $gaz $unl $kold Make no mistake- ol natty will be quite bullish but watch for another big flush drop into this descending formation - very likely another drop before the bull can break out. Short term could be bearish.. wait patiently I may consider some UNG puts until we can break out of this.
Appears to be forming a flag and respecting the channel trend lines. Looking for a bounce next week (and 2 weeks) into fib/resistance ranges. The lesser probability is for the channel to break down into area of previous breakout. Currently neutral and looking for a bounce into resistance for next short position.
Appears to be heading back into triangle - bearish unless it can gain momentum to break out. If not, looking to fall down fast.
Potential Nat Gas Price Action for the Next 2 weeks
Directional Bias: Long Price Target:4.20 Good Entry:3.61-3.66 Risk/Reward: Max Risk of 50 points/Potential Reward of 500-600 points Closing below 3.55 hourly candles invalidates.
Directional Bias: Long Price Target: 3.3+ Good Entry: 3.065-3.115 Risk/Reward: Max of 40 tick risk / Potential Reward of 200 ticks.
I usually short term trade/swing trade so often trade support and resistance no matter market trend, this would be on 1H (1 hour) time view and below, long-term views will be depicted on the 4H (4 hours) and 1D (1day) view, like this chart. Looking at the long-term analysis on the 4H and 1D view of natural gas, it looks like it has more or less finished an upside...
HUGE rejection right off of 2.825 (July 11 high). Bearish setups are still in play as I expect a bullish move on Wednesday and EIA report (last two reports were bullish so I expect shorts to cover a bit). As such, I expect a retest of today's highs ~2.81-2.825. I doubt natty will break 2.825 unless EIA report is extremely bullish. Therefore, I'll be looking to go...