I'm planning a *short trade (SELL)* on the *XNG/USD* (Natural Gas vs. US Dollar) pair, with a resistance level at *3.720* and a selling target at *3.340*.
### *Trade Plan Summary:*
- *Entry Zone:* Near *3.720* (resistance)
- *Sell Target (Take Profit):* *3.340*
- *Potential Drop:* ~10.2% from entry
### *Key Considerations:*
1. *Confirmation Needed:*
- Wait for *price rejection* (e.g., bearish candlestick patterns like pin bars, engulfing) at *3.720* before selling.
- Check if RSI/Stochastic shows *overbought conditions* (>70) for stronger confirmation.
2. *Stop-Loss (Risk Management):*
- Place stop-loss above resistance (e.g., *3.780–3.800*) to limit losses if the breakout reverses.
3. *Market Context:*
- Is Natural Gas in a *downtrend*? (Lower highs/lows strengthen the bearish case.)
- Watch for *USD strength* (since XNG/USD is inversely affected by USD rallies).
- Monitor *inventory data* (EIA reports) or weather forecasts impacting Natural Gas demand.
4. *Profit Target Justification:*
- *3.340* could be a support level (previous low or Fibonacci retracement level).
- Consider *partial profit-taking* at intermediate levels (e.g., 3.500) to secure gains.
### *Alternative Scenario:*
- If *3.720 breaks upwards*, the bearish setup fails—watch for a potential bullish reversal.
### *Trade Plan Summary:*
- *Entry Zone:* Near *3.720* (resistance)
- *Sell Target (Take Profit):* *3.340*
- *Potential Drop:* ~10.2% from entry
### *Key Considerations:*
1. *Confirmation Needed:*
- Wait for *price rejection* (e.g., bearish candlestick patterns like pin bars, engulfing) at *3.720* before selling.
- Check if RSI/Stochastic shows *overbought conditions* (>70) for stronger confirmation.
2. *Stop-Loss (Risk Management):*
- Place stop-loss above resistance (e.g., *3.780–3.800*) to limit losses if the breakout reverses.
3. *Market Context:*
- Is Natural Gas in a *downtrend*? (Lower highs/lows strengthen the bearish case.)
- Watch for *USD strength* (since XNG/USD is inversely affected by USD rallies).
- Monitor *inventory data* (EIA reports) or weather forecasts impacting Natural Gas demand.
4. *Profit Target Justification:*
- *3.340* could be a support level (previous low or Fibonacci retracement level).
- Consider *partial profit-taking* at intermediate levels (e.g., 3.500) to secure gains.
### *Alternative Scenario:*
- If *3.720 breaks upwards*, the bearish setup fails—watch for a potential bullish reversal.
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📲 Join telegram channel free ..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
Related publications
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.