FCG: FIRST TRUST NATURAL GAS ETF
The ETF is just coming out of the lows and it has formed an ascending triangle. It is testing the resistance breakout trend line again. After a successful breakout, it should retest the trend line as support and eventually reach the target price of ~$22 which is about a 25% from the breakout point. The Oscillators also look good to me.
I'm all about generating ideas off of the storm hitting the Gulf right now. With an anticipation in increasing high natural gas prices, I'm looking at this chart. A good buy for me is around 21.55 with an initial target of 23.13, where I will take 2/3 profits and move my stop up from 21.20.
As a disclaimer, this post and previous and future posts are my opinions...
We can take a long at market, or wait for 26.09 to get hit to jump in this trade. Stops should be below 23.55 to be safe. Target the 38 handle give or take. It's worth considering this setup, specially if NGAS resumes the uptrend.
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IWM, SPX, Crude all looking "toppy" to me. Wouldn't be surprised to see an initial pop in crude on Sunday night into Monday morning, but top is close in my opinion. Ideally would love to see a lower high on money flow before entering a position.