Natural Gas forum
Price jump from 3.14 → 3.288 = ~4.7% spike, reclaiming the July 8 close (3.28). Catalyst-driven move (bullish EIA storage report) = fundamental strength backing the reversal. Previous short setup is invalidated as the resistance level (3.28) has been broken
New Strategy: Bullish Reversal Play
Bias: Cautiously bullish. Enter a long position if the price holds above 3.28, confirming the breakout. Look for continued buying strength and strong volume to support the move. Stop loss should be placed below the July 9 low (around 3.14), or more tightly below 3.24 for reduced risk.
Profit targets are 3.41 as the first level (prior resistance) and 3.52 as the second level (top of the June range).
Watch open interest: if it rises with price, that indicates new long positions and strengthens the bullish case. If OI falls, it may just be a short-covering rally and caution is advised.
But the fire is so delightful. And since we've no place to go, Let it snow, Let it snow, Let it snow ❄️
Tight SL at vwap - 2xATR - spreads or just the 3SD of the 50 BB at 3.20 currently.
From NVI/PVI we have retail possibly out and institutions possibly holding/buying.
Good luck everyone!
PS: There's resistance at previous day's high near 3.33-3.37, to consider this a possible continuation into an uptrend we need price to break and hold above this level at least. If price starts getting rejected with volume from up there then it's time to exit long and possibly load shorts...
