NATURAL GAS: I'M WAITING NEXT SPRINGHi guys,
as you can see on my NatGas analyses, for now i'm bearish but this doesn't mean i'm short on price.
I'm just watching and waitinig for a good entry point to long NatGas, and now seems obvious we were in a big channel that now is broken.
So what's next?
Maybe we will see a retest of support in these weeks and then a big fall, since all EU country have big reserve for this winter.
Next year will be more different.
Let's see.
Natural Gas
Natural GasWednesday, 2 November 2022
01:36 AM (WIB)
Natural Gas prices have been exiting from the Falling Wedge structure and falling from the Ascending Uptrend Channel.
It falls started from the Head & Shoulder Formation at the previous top of resistance.
The market looks so aggressive until the price falls from the ascending channel.
Where is the direction of this market now?
Why do they sell off until they break out from the Ascending trendlines?
So, they don’t care at all about the structure market.
Considering MACD and Stochastic RSI performance, there is still a possibility for the price to move to $4.5 but I prefer to buy at $5.3.
I see good bullish development from $6.5 to $5.3
NATURAL GAS NATGAS Technical analysisSee Chart For Analysis.
Higher Timeframe:
-Price inside weekly demand
-Trend = uptrend
-Looking for longs
Lower Timeframe:
-4hr over-extended market broke 3x DBD in a row.
-Price making HH/HL on 4hr timeframe.
-Price shows both ML break + opposing zones removed + quality zones
Options:
1) buy inside 4hr demand
2) look for 5min/15min buys with confirmation once price enters 4hr demands.
Oct 31,22-NG Working on more 700 pt profitsNG is going back up my friends - as you saw last week I profited from 2 of my 4 trades at 700pts each - NICE!
This week I'm hoping for price to close out above 7. My trade at 6 I'm looking for taking my profits at 6.7 for another 700 pt profit. Then I will only have my last original Buy Order at 7.
Stay safe and have a great week.
Heiko
Natural Gas....Short- already in a overbought levels
- gap to be filled down
- delta bearish divergence
- loss of momentum
Oct 27,22-NG Winner AGAIN-700 pt profitThis week is a good week!! Last night I closed out my 5.5 Buy Order for another 700 point profit (officially 695 point profit) to close at 6.2 (officially 6.195).
Next up is my Buy Order at 6 which currently is in profit territory. The storage report is today so we shall see what happens. I might get out of my position with a small profit. Not sure. Then there is still my Buy Order at 7, where I was a little early (ok a LOT early) with my bullish prediction.
Should be an interesting finish to this year. Stay safe all and trade smart.
Heiko
Taf's Gun to the HeadTrade Idea : Sell Nat Gas at market
Reasoning : Had a hanging man yesterday and looking for a correction of the recent bullish move. Potenial double top on an intraday basis as well adds to confluence.
Entry:6.155
TP:5.835
SL:6.279
RR: 2.58
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Oct 26,22-NG Winner-700 points profit!NICE - So I just closed out my Buy Order from 5 and closed it out at 5.7 for a nice 700 point profit!!
Now I'll wait till price action rises into the 6's to close out my 5.5 Buy Order.
Congrats to all who followed my hunches :-) Enjoy your profits!
Stay Safe all.
Heiko
NATURAL GAS - NatGas - shortAs said before the "pausa" for Pull Back .. this is not an easy trade.
All the world think about an increase of energetics price for the winter but based on technical point in this moment we cannot confirm that.
The pull back .. until this moment was really short.. without "energy" .. and arrived only to 0,38 of thirt wave.. this let me to think that probably the short momentum is not completed.
Before I wrote and now confirm that:
1) COT report say that non commercial are short (with increase)
2) Europe has completed the "stock" for this winter
3) Europe has created a big plan to reduce the electricity consumption
4) USA has a short possibilities for increase the natural gas export at least for the next one mounths
5) The petroil cost are decrease and could be more convenient that GAS
---
From TA we have still on going the big H&S and a little bit H&S in this last movement.. so all this with technical wave analysis suggest a short continuation ...
Stop Over the 7,2$
Trade safe.. always
Oct 26,22-NG-Nice Profits from yesterdays rallyMy Buy Order at 5 is in decent profits today after yesterdays bullish run. Price action sits around my next Buy Order at 5.5 today.
I will continue to monitor price action as there will be ups and down from now till Feb. I will close my Buy Orders at 700-800 point profits along the way to lock in my profits.
Stay safe.
Heiko
Oct 25,22-NG-FINALLY price is going up :-)In looking at the chart, you can see how price dropped quite a bit outside the Linear Regression Indicator but price is on it's way back up.
Yesterday was the first day in a long time of positive gains, hopefully going to finish the week off in green territory.
As previously discussed, I put another Buy Order in at 5, which is now in profit so that's good. Just waiting for price to continue skyrocketing.
FYI - price will probably NOT skyrocket up to 10 or anything, but will very slowly make it's way up there over the winter. So this could be a 4 month grind, so get your Big Boy Pants on and strap in for a crazy ride - between the War, Recession, Sky high interest rates and Bankruptcies (more to come over the next 6-12 months) it's going to be a crazy 2023!!
Stay safe!
Heiko
Too fast, too furious for Natural Gas?After a sharp drop in August, Natural Gas futures is now sitting close to the long-term uptrend support which has marked key reversal points since June 2020. Our question is whether prices have fallen too fast and too soon?
We question “too furious” when we look at the RSI which currently points to oversold levels. Hitting a low close to 24, the last time RSI reached such an oversold level, in February 2017, prices rallied close to 35% over the next 2 months. We also note the formation of RSI divergence now, like the one we observed during the 2017 period. If history is any guide, from a technical perspective we can expect some upside for Natural Gas in the coming 2 months.
We question “too fast” as we are at the dawn of the seasonality trade. With demand for Natural gas used for heating generally rising as winter months are approaching, we can reflect on the seasonality behavior of Natural Gas prices over the past winters. A simple strategy of buying in the middle of October and waiting for the winter months gives a 70% win-rate when we look back at the past 10 years. Could we expect the same this winter?
On top of these, we think there are a few structural factors that might boost natural gas demand in the US over a longer-term horizon.
1) The recent announcement by the Biden administration that ruled out a ban or curbs on natural gas exports this winter, and Europe’s struggle with the energy crisis spell good news for Natural Gas’s demand.
2) Current Natural gas storage levels are also below the 5-year average as reported by the US EIA .
3) A move away from coal as agreed in the COP26 means alternative energy sources are bound to replace coal. With many coal-powered plants being refurbished to work with natural gas, we see structural demand rising as more of these plants come online.
Natural gas’s current technical levels point oversold to us, with the seasonality trade potentially on the cards and an overall supportive macro backdrop, we lean bullish on Natural gas. As Natural Gas is considered a highly volatile contract, we can use the Average True Range (ATR) to set our stops. In this case, we follow the rule of thumb to multiply the ART by 2, which sets our stop at roughly 4.550.
Entry at 5.200, stop at 4.550. Target at 6.400.
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Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
NATGAS Supply And Demand LONG AnalysisHigher Timeframe:
-Price inside HTF weekly demand
-Look for buys
Lower Timeframe:
-4hr timeframe overextended with 6x DBD in a row.
-Wait for aggressive downward trend line break + strong quality zone to be created
-looking to either buy the demand is price pulls back or use as my highertimeframe and then look for new lowertimeframe
confirmation.
Natural Gas, maybe the last long swing tradingnatural gas is risky and high volatile. A simply backtest on seasonality over the last years is not sufficient. But I note now an interesting technical convergence to a dynamic support since 2020 and Fibonacci Level (0.618) retracement of this last uptrend. Maybe it could be the last long swing trading if chart will confirm that