Natural Gas futures have had a tremedous run from the basing action ending in a final test of the recently lowest sequence number 9. From here, prices have climbed significanly. Prices overextended recenty and now there is a consolidation, if not small pullback in progress.
A sequence count down of 6 might be such an entry point. Let's watch this unfold....
We continue to believe that PM will move higher once this small pullback ends, which could be today. We see the slightly out of the money options expiring in two weeks as particularly attractive right now. Also, please check out this tradingview.com link for forecast information. We think that this pattern will produce a profit within about 5 days
www.tradingview.com
We have a buy pattern alert on this name at a reference price of $95.66, yesterday's close. This may be best played using a slightly out of the money call option. Perhaps the Sept. 16th expiration in order to give this pattern a bit more time to develop. For a confirmation, we will wait and enter on the first trading day when it is clear that the close will be...
We see this pullback as a good short-term trade opportunity. That said, the options on this name are both not very liquid and most have open interest levels below 100. We tend to avoid options where there are wide bid/ask spreads (even when we can get the option in the midpoint) and when open interest for any strike price is below 100 contracts. This is one to watch.
AJG is completing a nicely-formed buying point. We are looking for the next day in which the close is likely to be above the open. Let's watch this one with a buy reference point of today's close.
