Small long here, I will add depending on the price action.
Reasons for the trade:
-acceleration to the downside
-anticipating a false breakdown(maybe the add will be after we get back above 950)
-divergence on the daily TF
-some round price numbers
Going into the end of the year, I believe this is a good trade.
we are not at the 61.8 fib retracement and acting weak above the moving averages.
First trade small and I will add even on the upside until I have a full position
China news are more often..
I won't mind if the prices continues to go down, because of the low risk of my position at the moment.
-buy the rumor sell the news
after a surprise in earnings on 2nd Aug, the price action looks very good
big volume, gap up, above all MAs, and holding 10dma very nicely
if long, I would close my position if the price closes under 20dma
PEPPERSTONE:NATGAS is right now at the 61.8 percent retracement from the last move higher.
The price action does not look good.
But what can stop the price from moving down?
-we have the 4H 200MA to at least slow the move down
-dotted blue line that goes back months back
-61.8 percent fib just mentioned
at the moment we are at the 61.8 fib retracement from the October 2022 low to December high
I know that one Central bank is dovish and the other just hiked, but maybe it is already considered into the price
before this move we had big divergence on the 4H
we had the acceleration that happened at the beginning of May and after that the price went back into the channel
usually this is a sign that we will have at least a pullback
remember that for every trade I start small and take action after, depending on the PA