Natural Gas collapsing! Yet another deflationary signNatural gas in the US is collapsing. In part this has to do with LNG exports to the rest of the world being halted due to a fire to one of the export terminals. However in my honest opinion, there is more to it. It probably has to do more with the deflationary forces taking over, as high interest rates, money supply shrinking and inflation being too high, have destroyed demand to a very large extend. At the same time we are seeing progress in the energy space, with more projects and drilling taking place, as the ESG movement is taking a hit. The green movement needs to be sidetracked for a while, as we need cheap energy right now. Otherwise the war in Ukraine won't stop in Ukraine and we are gonna have famine in most of the world.
So where would I be looking to buy natural gas? Or until what level would I be willing to short it? Based on an average I created which includes several futures contracts, I think that closing shorts at around 5$ is a good idea, yet buying a lot of NatGas with significant upside, I'd say start buying between 3-4$.
Natural Gas
Dec 28,22-NG-How low will it go?So NG is tanking hard...question of course is how low will it tank?
I will be watching for a bottom and then put in a Buy Order seeing that it's still winter, price 'should' go up some at least, but you never know. We have had stranger winters where price just keeps coming down.
I'm not sure if we are looking at a time where it will drop all the way back to the 2's range - we shall see.
Happy New Year all.
Heiko
F/U on Natural Gas: Expecting a up move next.This is a follow up from the Oct.23rd post (if interested see link below). We did get a good bonce up after that post but pride than dropped back to what appears to be be a support resistance level. We now have a positive reversal in the daily RSI followed by a bullish divergence in the daily RSI. This combination frequently leads to a rise. It correct I would expect the near term price not to close below 4.75 labeled "b".
Notice the recent 5 wave expanding triangle on the daily chart labeled a-b. There is also a 5 wave contracting triangle in the daily chart from September-April labeled a-b and another labeled A-B. Triangles most commonly occur as the B wave of an A-B-C correction or at wave 3 of a 5 wave impulse series. (EWT)
#henryhub #naturalgas Double bottom. Spinning top reversal. BuyHenry Hub Natural Gas
So we have a possible double bottom forming on natural gas. If price fell 8c more on the last low we would have a bullish divergence now. Throw in a spinning top reversal on the 2nd bottom, STO primed for an increase, weak volume and stronger RSI all things point to the sky.
RSI: Relative Strength is 37 on the second low versus 25 on the first. Selling is a lot weaker this time around.
STO: Stochastic has bottomed out and is ready for a jump.
Volume: Has been dropping on this sell off confirming the weakness of this drop.
Target 1: 7.00 (possible 34% return)
Stop Loss: 4.60
Going Short in Natural Gas Trade Indications:
1. Formation of Doji candle on daily showing no comfidence in the traders.
2 DOW theory HL & LL intact.
2. AB = CD pattern in formation.
3. Price at 61.8% FIb level support
4. AB=CD pattern intact
5. Natural Gas moderately bearish in December/ January
6. Bullish divergence on ST-Dev
7. Increase in seller volume.
Trade plan: Short / sell Trade
Entry point : Buy above the support zone @ 5.240 with bullish candle.
Stop Loss @ 5.560
Take profit - 1 @ 4.980
Take profit - 2 @ 4.770
Secondray Trade Buy / Long
If the AB=CD pattern succeeded and price value bounces from 4.750 , then place a long trade.
Entry price @ 4.820
Stop Loss @ 4.750
TP - 1 @ 4.990
TP - 2 @ 5.500
Regards.
NATGAS Long Update! Buy!
Hello,Traders!
Here is another dimension
To the NG bullish forecast
That I posted last week.
In there we established
That the price is about to retest
The long-term rising support line
From where the rebound is almost
Inevitable. Now, the price has indeed
Almost reached that support and today
We are taking a closer look at the gas chart.
As you can see the rising support is
Confluencing with the horizontal support level
Which reinforces our bullish bias
And we are already seeing a bullish reaction
So I think that we can expect a move higher
And a retest of the local
Horizontal resistance level above
Buy!
Like, comment and subscribe to boost your trading!
See other ideas below too!
Natural GasDouble Bottom on 4hrs Time Frame. A Bulleh Pattern . Expecting a new upmove till the trendline.
NAS IDEANatural gas target > 7.5$
Natural gas price repeated the positive closings above the moving average 55, to form additional support at 6.750 in order to confirm confining trades within the bullish track that appears on the chart.
Stochastic attempt to provide the positive momentum will assist to reinforce the chances of recoding many positive targets that might start at 7.200 and 7.650.
The expected trading range for today is between 6.800 and 7.650
NATURAL GAS BEARISH OUTLOOKThe cold weather in US had done little to support a price rise of the Natural Gas, while the consumption was lower than predicted.
The price of the gas had broken its support at $5.3 and might be heading further down, testing prices of 4.25 in the next couple of days. In the opposite scenario the price might try to reach levels of $6.07
RSI and MACD both are supporting the bearish movement with MACD histogram below 0 line and RSI below the 50 neutral line.
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Could the Markets Crash in January?EU and US futures are recovering after the slide that followed the decision of the central bank of Japan.
Surprisingly, the central bank of Japan has revised the tolerance threshold of the ten-year bond yield to 0%-0.5%.
Some monetary policy adjustments have been talked about in recent days. Still, most economists expected that the most important announcements would come later, closer to the end of Governor Haruhiko Kuroda's mandate.
In the press release, the Bank of Japan confirmed interest rates at -0.1% and anticipated a temporary increase in bond purchases for January to 9,000 billion yen a month from 7,300 billion.
What does it mean in practical terms? There is room for a rise in interest rates on Japanese ten-year government bonds. Previously the maximum range was 0.25; now, it is 0.50.
It is the first sign after a long time of a possible end to Japan's ultra-expansionary policies.
Nasdaq 100 Futures, S&P 500 Futures, DAX Futures, FTSE MIB, IBEX 35: As written in previous articles the indices have exhausted their strength and are starting to go down.
The recession, which will lead to a substantial decline in earnings, is not yet discounted by the markets. This means there is plenty of room to descend.
Markets always anticipate a recession three months in advance so that we will see the real market crash in January.
The ideal instrument in these cases is the VIX - the S&P 500 volatility index - that usually scores excellent returns with a global recession at the door.
I will shortly open a buy operation on this instrument with a $35-36 target.
Natural gas: As predicted in previous articles, the crash has arrived. There is a clear difference between the short run and the long run right now. In the long run, the situation is interesting.
Europe will need even more LNG to replace Russian volumes next summer as the continent reloads storage as Chinese demand recovers from lockdowns and offsets lower imports from other Asian buyers. In the short term, one must be careful to avoid impulsive purchases.
There are big doubts about the reopening of the export plants, which have been offline for some time now and which are creating domestic excess supply, potentially negative for prices along with the seasonality.
Furthermore, the price cap on the TTF, set at 180, even if quite high considering thatfour4 years ago, the TTF was quoted at 20, will certainly put a stop to speculation by lowering prices, exactly what we are seeing now.
This is also indirectly affecting American natural gas as it is very likely that next year American gas will be increasingly the protagonist in Europe with the exit of Russia.
I will evaluate a gas entry only in the 4.50-5 area, prices that I expect between the end of December and the beginning of January.
Crude oil proves very solid despite the collapse of the indices. Two main reasons are behind the excellent performance.
The price cap, although not penalizing Russia, could lead to an increase in demand for American oil, which is very positive.
Chinese oil demand, held back by COVID, will pick up in 2023.
All this is combined with the fact that oil stocks are at their lowest in 20 years, with countries like Russia reporting sharply declining production, a factor that is good for prices as it creates a shortage of oil. I remain positive over the long term with a target of $85-90.
Amazon (NASDAQ:AMZN): As written in previous articles, prices were too high already at the beginning of 2022. I'm still pessimistic, the profitability of the group has practically disappeared, and the prospects for 2023 are negative.
According to my model, the stock is worth $70, so it can go further down.
Tesla (NASDAQ:TSLA): Bad period for the stock is destined to continue. There are problems in China, with lower prices, due to a weakening demand which means lower margins, and competition in Europe with Stellantis NV (NYSE:STLA) is increasingly threatening.
Also, Elon Musk is increasingly distracted by Twitter. As written early in 2022, according to my model, the stock was worth $170 and was already very expensive at the beginning of the year.
My current positions: I currently have a buy position on the Dax index, which is about to close in profit.
Natural Gas (NATGASUSD): Time to Grow?! 💨
Natural Gas dropped to a key weekly/daily demand zone one more time.
Chances will be high to see a pullback from that.
A bullish breakout of a falling parallel channel on 1H time frame confirms the strength of bulls.
Goals: 5.6 / 5.8
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Dec 20,22-NG-Did anyone else go long?So there was some consolidating around 5.4 so I put a Buy Order in and so far so good. I'll probably get out of it by close on Friday as Monday temps are back to warmer temps so I don't want to get burned by a huge dip when the markets open again on Sun night.
Did anyone else put their Buy order in? Or am I the only crazy one :-)
Heiko
Dec 20,22-NG-Go Long at 5.4? or 5?Price is continuing to drop even though the temperature this week across the U.S. especially into Christmas is going to be damn cold!!
So the question is...will price drop all the way down to 5?? or should we get in now at around 5.4?
Both are areas of Support, and this cold is going to send demand through the roof, but when? Will price keep going down until Thurs or Fri this week? Or will price spike up early next week?
All I know is I'm not missing out on this trade....could be a nice 1000 point spike :-)
What are your thoughts?
Heiko
Dec 19,22-NG-Not yet time to go longSO obviously my last call was horrible--I exited my position with a small loss.
The outside of the Linnear Regression Indicator is around the 5 mark so I'm thinking price action might drop to around there.
I will wait for clear signs of a turnaround, then I'll put in my Buy Order. I can't believe the price, I mean this is winter!! Anyway, sometimes there is no logic to trading.
When price gets down there I'll let you know what my plans are. With the holidays also, things are a bit wonky - might not even get a trade in until Jan.
To all, please have a safe and splendid Christmas, Holiday Season and a fantastic New Year!! Have a drink for me :-)
Heiko
Natural Gas to GrowIt seems NG has started a new impulse wave as it finished C move down in late October. The momentum in price sees a higher low, and a potential for a bullish continuation should see a test of $7.1 resistance level. Major resistance is seen at $9.7.
I see energy as the ONLY short-medium term gainer. NASDAQ has been underperforming greatly in the index range, and will probably continue to see lower demand as earnings have been disappointing, and Fed's tightening policy continues.
Natural Gas Futures (Road Map)!!!🗺️What are Natural Gas Futures ❗️❓
Natural Gas Futures can be used for hedging or speculating and can be traded nearly 24 hours per day, 6 days per week. Trading Natural Gas Futures allows hedgers to manage risk within the highly volatile natural gas price, which is driven by weather-related demand.
Natural Gas Futures is running in Heavy Resistance Zone & Important Trendlin & Resistance Line, and at the same time, it was able to pass the main wave 5 in this zone. So I expect Natural Gas Futures to go down to my🎯targets🎯 that I showed in my chart.
Where can Natural Gas Futures go (🎯Targets🎯)❗️❓
Target🎯: 4.67$-4.55$
Target🎯: 2.98$-2.84$
Natural Gas Futures Analyze, Monthly Timeframe (Logscale).
Also, we can see one of the valid candlestick reversal patterns (💫Shooting Star💫) at a weekly timeframe 👇
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy, this is just my idea, and I will be glad to see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
NatGas: Don't trip 🚶🏼NatGas is currently facing down and should leave the turquoise target zone to climb below the support line at $4.750 to complete the pink wave iii. Our alternative scenario implies, that the course could rise above the resistance mark at $7.064 instead, if the course would stay above the $5.337-mark. After the completion of the pink iii in our primary scenario, we're expecting the course to rise between $4.750 and $5.337 to finish off the pink wave iv, before dropping back South. The downwards slope should stretch until the turquoise target zone between $3.436 and $1.880 to end the green wave .