Natrualgas
Maybe It's Too Early To Chase High In SeptemberHere are reasons to short natural gas at this level:
1. Both MACD and RSI have reached overbrought level. 1 Year MACD reached historical high since Oct 2004.
2. Reached 2.7-2.73 resistance level
3. Mild temperature will not boost the short term demand.
LONG THIS 3X ETFDon't really like charting 3x, however this look's like a decent setup.
Daily RSI & MacD = Bullish momentum + Elliot pattern will look to short at top with DGAZ down to fib 50%
Natral gas buy opportunityThursday EIA inventory report showed that inventories rose by 102 bcf. That is eleventh consecutive week that inventories are above their 5 year average. That pushed prices down to test previous support and making double bottom structure. Chart structure is good for bounce and signalling some gains for long positions.
$NG1! faces a retracement to fill the gap1. Lower highs and lows
2. lower volumes
3. large pin bar at the recent top
= gap must be filled.
risk:reward=1:4.46
Another Bounce Before Spring?During the mid of November, we experienced a terrible bull attack. I shorted Natural Gas at 4 and got a huge loss.
Thanks to the setting of stop loss, i survived from that bounce. I also heard many traders lost their position when they waked up in the morning.
Hedge Fund "OptionSellers" managed by the legendary trader James Cordier, broke in one night, because they didn't hedge anything for their short position on Natrual Gas.
I really respect the bulls for that attack. They taught me an important lesson in my life.
OK, back to the Topic. Natural Gas slipped deeply after it failed to chase new high. And it has touched its strong support. I think it may bounce back in the next few week.
If the Natural Gas break the support, we will see what will happen on the uptrend line.
Natural gas all the way up! - It might take one to two years to complete this movement.
- The reason I analyze neutral gas is to give hedge and industrial managers a hint or at least my personal view on the commodity.
- This also might gives us a hint about the oil prices and companies that are affected by them.
A sharp drop is coming soonNatural gas reached 3.295 today, upped 19% in a month. It just the beginning of October, the weather is going mild in the next two or three weeks. So we will probably have another two or three weeks injections before the real winter coming. So i think it's still too early to chase that high, and the bulls are facing extremely high risk. Technically, we have already filled the gap at 3.295. MACD is over brought and nearly cross over. RSI is in over brought area. So i think the Natural Gas is facing a sudden correction before the winter.
Natural Gas Closed Above 6 and 8 Day Moving AveragesNatural Gas closed above the 6 and 8 day moving averages. Today's green Heikin-Ashi was the second in a row. This could be the start of a move back up.
NGAS : Breakout From Daily bull Flag. Target $3.101I have been chasing Illusive HS pattern on 4hr and daily but finally it broke out upside from triangle. My first target is $3.101. Month ago , many were bearish on the chart suggesting topping but I was foolishly long and I dared not to publish idea but commented on chartwatchers (Nice Chap) short idea. eventually I found my target then.
Happy weekends
