BE CAREFUL ON THE FALSE BREAKOUT OF NATURAL GAS!
Updated
As we can clearly see at my previous article on natural gas published on 28th April,price of natural gas just touched 61,8% Fibonacci retracement of the downward move and retraced.
As i said before we are in the 'consolidation season' of natural gas with low demand and increasing number of inventories numbers.
A lot may be confused and buy this fake breakout but as i stated before it's early for 'summer rally' and the crucial level we want to see in order to validated this bullish momentum is the 3,5$ per MMBtu where a lot of shorts and a lot of longs are waiting.
As we can notice at the chart we have two channels the red parallel that i showed you at my previous weekly chart and a blue ascending channel.
We notice also the neck line of the head and shoulders(better can been seen on the weeekly chart) neck line remained untouched with the 61,8 Fibonacci retracement.
Unfortunately because of my job i couldn't publish this article earlier to save those who went long on this fake breakout,as i stated at my previous article a validate breakout above 3,5$ per MMBtu will trigger the summer rally and the bullish continuation.
Someone if he was careful and he had noticed that we made higher price highs but no higher highs on the RSI,as we can see, and combined the information above would be in a position to understand that this was not a breakout that will triiger a strong upward move.
I expect a retracement at the ascending blue channel at around 3,150-3,100$ per MMBtu(38,2% Fib retracement) before heading back up and break the ABC triangle we see at the chart.
HAPPY TRADING GUYS!
THANKS FOR SUPPORT!
As i said before we are in the 'consolidation season' of natural gas with low demand and increasing number of inventories numbers.
A lot may be confused and buy this fake breakout but as i stated before it's early for 'summer rally' and the crucial level we want to see in order to validated this bullish momentum is the 3,5$ per MMBtu where a lot of shorts and a lot of longs are waiting.
As we can notice at the chart we have two channels the red parallel that i showed you at my previous weekly chart and a blue ascending channel.
We notice also the neck line of the head and shoulders(better can been seen on the weeekly chart) neck line remained untouched with the 61,8 Fibonacci retracement.
Unfortunately because of my job i couldn't publish this article earlier to save those who went long on this fake breakout,as i stated at my previous article a validate breakout above 3,5$ per MMBtu will trigger the summer rally and the bullish continuation.
Someone if he was careful and he had noticed that we made higher price highs but no higher highs on the RSI,as we can see, and combined the information above would be in a position to understand that this was not a breakout that will triiger a strong upward move.
I expect a retracement at the ascending blue channel at around 3,150-3,100$ per MMBtu(38,2% Fib retracement) before heading back up and break the ABC triangle we see at the chart.
HAPPY TRADING GUYS!
THANKS FOR SUPPORT!
Trade active
As i said here this move was expected i hope i have saved some traders..Retest of trend line as is too early to break previous highs.
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