Natural Gas has recorded a negative bearish divergence on the 4hr which I believe is the sign of a correction to retest the green base below.
It had fired on all of it's cylinders yesterday which I believe was a dead cat bounce removing as many short sellers as possible.
Shorting this time of year usually means commission from your broker - mine is offering 3%...
The likelihood is now increasing for a strong rebound up. In the first stage up to this month's previous peak, which means about 10%. Best case scenario in the slightly longer term means an increase of as much as 75%!
Natural gas seems to have completed pull back. Price as broken past the descending trendline and now has climbed above recent support turned resistance layer. Awesome oscillator has too crossed over to bullish zone and we also see hidden divergence of Awesome Oscillator.
Seasonal Opportunity is arising, price action suggest we will start a bullish run. Setting SL below recent relevant lows with TP targeting some soft price points that should easily be reached. This will be a long trade ladies and Jellyspoons.
Technicals :
Taking a second position in Natural Gas long
Reasons :
uHd
pb to support and retook the kijun
Daily cloud bulling
Wicked Daddy Deeper pullback squeeze
Price hit daily lower ADR and AWR and rallied
Weekly 5EMAs signal and 15/50 signal:
1hour lower time frame crown fakeout:
Ok, as it often happens given the extrem sell-off on the news I am falling back on one of my older scenarios where wave 2 has a more pronounced wave retracing at least 0.618 of wave 1. Other options are also possible (one indicated as a bigger contracting diagonal).
It might be a chance to short but a SL has to be managed carefully.
Natgas is holding below the support (range), if it is able to get back, it will be able to make a retracement to 0.5 fib. Otherwise, if it is still rejected and the price closes under. Natgas will continue on 3d.
Analysis for NATURAL GAS on the daily direction has shown an upswing for a bullish trend that has respected the support levels. Since September 7th, 2023, we have seen a nice back and forth movement pattern that continues to respect the channels support range and resistance making this a prime target for us to be able to profit off on. Please enter with proper...
Natural gas seems to be in the process of forming double top on daily TF. The volatility is high and we can clearly spot bearish divergence on RSI graph. This suggests we may see retracement up to key support zone.
The bullish long-term trend can choose different paths. Of course many of us on the bull side would like it to go straight up. Unfortunately I already see indications of possible diagonal in the making which would be more difficult to trade.
One of those indications is an anemic wave 2 which can turn out to be wave as indicated in black.
As we travel along...
Natural Gas is approaching a crunch moment. Because the price has taken the previous low labelled as wave a, the scenario with a even more expanded ABC flat is off the table. A more complex WXY is still possible where current ABC is wave W but less likely than a simple flat.
Also a scenario with a longer wave C remains but I would assign it a lower probability.
A shooting star is printing a shakeout through the 200 day MA.
The trend has been drifting for some time and so it could continue to drift, but its hit the liquidity landmark and printing a reversal candle.
If the day closes here then there could be more downside and potentially the trend change.
Also notice that it is potentially printing the Head & Shoulders...
My analysis: short
🎯 1. Take-Profit Target: $3.143
🎯 2. Take-Profit Target: $3.276
📈 I've observed a strong level of market support with robust price rejections and extended wicks around $2.845, forming a Solid Support Line (SSL) on the 4H timeframe. 📊📈
Furthermore, there's a conspicuous fair value gap on the weekly timeframe, though I have reservations about...
Until there is some form of bounce and waves 1-2 of the new trend are shaped it is risky to call the bottom.
One option could be that the ugly diagonal was extended wave 1. A recent consolidation looks like a neat barrier triangle that usually happens in waves b, x or 4. It it is 4 that means wave 5 should be shorter than wave 3. If it is b we are charting...
