After reviewing today’s market setup, I decided to focus on UNG (United States Natural Gas Fund) for tomorrow’s trading. Here’s a breakdown of my thought process and key observations:
Key Reasons for Choosing UNG:
1. Clear Technical Levels:
* $15.00 is a significant level of interest with strong bullish positioning reflected in options data (highest positive GEX level). A breakout above this level could signal a continuation of the upward trend.
* $14.50 serves as a critical support level, with heavy Put interest (-66.77% GEX). A breakdown below this could lead to bearish momentum.
*
2. Options Sentiment:
* Calls dominate with a 133.7% GEX skew, indicating strong bullish sentiment in the options market. This provides an opportunity for both momentum trades to the upside or a contrarian approach if the level fails.
*
3. Volatility Setup:
* With an IVR of 39.8 and IVx average at 69.6, the stock presents a good balance of volatility for active trading without being overly erratic. This makes it an attractive candidate for controlled setups.
*
4. Risk/Reward Profile:
* The proximity to key levels ($15.00 resistance and $14.50 support) creates a manageable risk/reward ratio. I can set tight stop-losses while targeting the next significant GEX levels.
*
5. Sector Opportunity:
* Natural gas has been moving with increased volume and volatility recently. This sectoral activity often translates to heightened trading opportunities.
Questions for Fellow Traders:
* What’s your opinion on UNG for tomorrow?
* Do you see the bullish momentum continuing, or do you think there’s a higher likelihood of a breakdown below $14.50?
* Are there any fundamental or macroeconomic factors I might be overlooking that could impact natural gas tomorrow?
Let me know your thoughts! Trading is always better when we share ideas and refine our setups together. 😊
Key Reasons for Choosing UNG:
1. Clear Technical Levels:
* $15.00 is a significant level of interest with strong bullish positioning reflected in options data (highest positive GEX level). A breakout above this level could signal a continuation of the upward trend.
* $14.50 serves as a critical support level, with heavy Put interest (-66.77% GEX). A breakdown below this could lead to bearish momentum.
*
2. Options Sentiment:
* Calls dominate with a 133.7% GEX skew, indicating strong bullish sentiment in the options market. This provides an opportunity for both momentum trades to the upside or a contrarian approach if the level fails.
*
3. Volatility Setup:
* With an IVR of 39.8 and IVx average at 69.6, the stock presents a good balance of volatility for active trading without being overly erratic. This makes it an attractive candidate for controlled setups.
*
4. Risk/Reward Profile:
* The proximity to key levels ($15.00 resistance and $14.50 support) creates a manageable risk/reward ratio. I can set tight stop-losses while targeting the next significant GEX levels.
*
5. Sector Opportunity:
* Natural gas has been moving with increased volume and volatility recently. This sectoral activity often translates to heightened trading opportunities.
Questions for Fellow Traders:
* What’s your opinion on UNG for tomorrow?
* Do you see the bullish momentum continuing, or do you think there’s a higher likelihood of a breakdown below $14.50?
* Are there any fundamental or macroeconomic factors I might be overlooking that could impact natural gas tomorrow?
Let me know your thoughts! Trading is always better when we share ideas and refine our setups together. 😊
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.