Natural gas had made a secular low. It has also broken out of its wedge and is heading higher in the years to come.
NG hit today the Higher High trend-line of the Megaphone pattern that it has been trading in since the start of the year (1D RSI = 69.350, MACD = 0.105, ADX = 33.132). The 1D MACD has entered its 1 year Sell Zone. We are taking this as a strong Sell Opportunity at least towards the 0.618 Fibonacci retracement level, which at the moment is at 1.846. This idea is...
Natural Gas at the daily view. Natural gas spiked up today which shouldn't be a surprise. It's about time if I may add. Natural gas had an inverse head and shoulders pattern in the last 3 months and it would skyrocket above $1.89. And that's what happened. Natural gas was in a volatility box for 3 months. It was building up energy for a breakout. That breakout...
Winter contracts for Natural Gas are already trading near the pivotal $3.00 level. If Winter this year turns out to be average prices will likely sell off towards $2.50 (the 200 Day EMA). However, if production continues to fall and Winter is cold enough, prices can break above $3.00 and complete the parabolic move that is forming. If the latter happens, I see...
Natural gas at the 4 hour view. It turns out that natural gas has been in a downward channel since 2018. Furthermore, in the last 3 months, gas has been in a trading box. You know what this means? Gas has become predictable. It may look choppy at first, but it's trading in a general range between 1.58 to 1.93. There were spikes above and below that range....
Bulls are still hanging on with a chance of changing the weekly trend. Price does look exhausted and a seasonal cycle low in August is very possible. Green line is based on brief consolidation and continuation. Price target is $2.15 Orange candles is the June price action. Red is a steady grind lower over the next 3-4 weeks. Both the orange and red have price...
Main items we can see on the chart: a) The price is on a weekly support zone and since MARCH 2020 has been ranging between 2USD and 1.50USD b) If we analyze the range we can see that the price is moving towards the higher level of it, after the breakout of the zig-zag pattern (corrective structure) c) The breakout of the range will give us reliable...
I have a love hate relationship with this stock as it is volatile as you can see from the chart. You can be in the money today and the next two days, it could dampen your mood by heading south once more. Then , when you give up buying, it offers you an element of surprise. Anyway, the 4H chart shows a possible breakout around 1.80 level or it could revisit the...
On June 3rd I posted my strategy for trading Natural Gas this coming Winter (linked below). As prices slowly drift lower, it looks like traders are beginning to accumulate long positions. I've opened a long position on the December(Z) E-mini contract and might add 1 or 2 more over the next couple months with the sell target up around $3.30ish. Will see how it...
Traders are done selling for now and will be looking to test the $2 level next in anticipation of August heating demand. A bullish pennant is forming and should break out after price clears above the 50 day EMA. Moving forward, buying the dip is the play as we head towards Winter. Opened a long position on the September(U) contract @ $1.795
Natural Gas at the 4 hour view. Gas is currently consolidating right now into a wedge. The end of this wedge is early next week. If I were to guess, gas is trying to push up. Gas currently has an inverse head and shoulders pattern going on. A very slow one, but it's telling me that gas may be getting ready for a spike up. We are in the middle of summer after...
Here's some areas for your entrys and exits.
Natural Gas prices got hammered this past week. There's too much supply and not enough demand however, prices are near the bottom of the trading range and Summer heat should give prices a boost soon. It's also worth mentioning that the Dollar DXY is trending lower and which is bullish for all commodities. Prices are breaking out of a downtrend so I've opened a...
5 years running July has seen a downtrend. Is this year any different or is it even worse than average?
June 26 is well confirmed as the daily cycle low. The bulls were strong early in the cycle but now appears to have been a strong counter trend rallied fueled by weather changing short term fundamentals. Bulls do still have a chance but with the weak bounce that failed this past week price action favors the bears. Depending on the bear strength price targets would...