The natural Gas market has been chopping around since we carved out a low in February of 2023, but has been overall trending higher and holding out above critical trendline support.
Looking at the price action, it has proven tough to hold contracts for the long term as there is so much volatility involved, but there are some KEY levels to watch to try and understand the overall market trend that is playing out.
Trendline Support:
As I mentioned earlier, there is a strong level of trendline support going back to the lows made in February, and buyers have stepped in and defended this trend with great conviction, not allowing the market to break and make a new low. Although when looking at this market it may look like just simple chop, it is clear the market is trending higher and has not broken below this level with conviction, signaling strength moving forward.
.382 Retracement Level:
When a market is in a downtrend or bearish trend, we often see strong rejections at the .382
retracement level that sends the market back lower. Looking at this chart, we saw Natural Gas breakout and hold above that key level in June, and have defended this level as support, dipping slightly below it a few times and then rallying back higher. This could have been the signal that sent the market back to more of a neutral trend, and if we can see a break and close out above 3.004-3.015, it could be the catalyst for a strong upside move.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Looking at the price action, it has proven tough to hold contracts for the long term as there is so much volatility involved, but there are some KEY levels to watch to try and understand the overall market trend that is playing out.
Trendline Support:
As I mentioned earlier, there is a strong level of trendline support going back to the lows made in February, and buyers have stepped in and defended this trend with great conviction, not allowing the market to break and make a new low. Although when looking at this market it may look like just simple chop, it is clear the market is trending higher and has not broken below this level with conviction, signaling strength moving forward.
.382 Retracement Level:
When a market is in a downtrend or bearish trend, we often see strong rejections at the .382
retracement level that sends the market back lower. Looking at this chart, we saw Natural Gas breakout and hold above that key level in June, and have defended this level as support, dipping slightly below it a few times and then rallying back higher. This could have been the signal that sent the market back to more of a neutral trend, and if we can see a break and close out above 3.004-3.015, it could be the catalyst for a strong upside move.
Check out CME Group real-time data plans available on TradingView here: www.tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.