NATURAL GAS ($8.56) - Short/Sell Idea
NATURAL GAS ($8.56) - Potential Short/Sell Idea
Today it hit a 14-year high of $8.65. I added this as a long idea 13 months ago at $2.66 representing a 225% advance. At the beginning of the year I discussed the large falling wedge (bullish setup) and the consolidation breakout in March.
Current View:
1. The price (now $8.56) appears extended with the first metric being it's extension vs the 200-day moving average ($4.91).
2. Negative divergence as per the 14-day RSI
3. IF yesterday's high is not held ($8.47), this could see a 'dark cloud cover' candle formation being printed. I might be a day or two early on point #3 as the price can remain elevated.
These three factors suggest that the buy/long side (technical view) is not as appealing as in previous months and may even set up a *short term* short/sell once point #3 is triggered.
Provisional Levels:
Sell Stop: $8.45
Stop-loss: $8.72
Target: $7.25
Today it hit a 14-year high of $8.65. I added this as a long idea 13 months ago at $2.66 representing a 225% advance. At the beginning of the year I discussed the large falling wedge (bullish setup) and the consolidation breakout in March.
Current View:
1. The price (now $8.56) appears extended with the first metric being it's extension vs the 200-day moving average ($4.91).
2. Negative divergence as per the 14-day RSI
3. IF yesterday's high is not held ($8.47), this could see a 'dark cloud cover' candle formation being printed. I might be a day or two early on point #3 as the price can remain elevated.
These three factors suggest that the buy/long side (technical view) is not as appealing as in previous months and may even set up a *short term* short/sell once point #3 is triggered.
Provisional Levels:
Sell Stop: $8.45
Stop-loss: $8.72
Target: $7.25
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.