Natural Gas
Natural Gas Price Hits 3-Month HighNatural Gas Price Hits 3-Month High
According to today's XNG/USD chart, the price of natural gas:
→ has risen by approximately 30% since the beginning of September;
→ is currently around the 2.95 level – the last time the price was at this level was at the end of June this year.
Bullish sentiment is supported by:
→ forecasts of a warmer autumn, which is increasing demand for natural gas to power air conditioning systems;
→ concerns related to Hurricane Helen in the US Gulf of Mexico. According to the EIA, 5% of total US dry natural gas production comes from the Gulf of Mexico, and 51% of the total capacity of US natural gas processing plants is located along the US Gulf Coast.
Technical analysis of the XNG/USD chart shows that in September, the price has been moving within an ascending channel (marked in blue).
It is noticeable that from the 20th onwards, demand forces have intensified, leading to the following:
→ the price broke through the 2.64 resistance level;
→ the price moved to the upper half of the ascending channel, after which its median line began to show signs of support;
→ the RSI indicator reached overbought territory.
Currently, there are no signs on the XNG/USD chart of bears attempting to seize control, while the bulls may be "gathering strength" for a possible attempt to break through the psychological level of 3.00. If this happens and is successful, it could pave the way towards the yearly high in the 3.20 region.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Natural Gas Goes Kaboom!Profits have been secured I the Natural gas trade. That being said I still think Nat gas equities can push higher.
On the UNG chart we just saw the 20 day MA & 50 Day MA bullishly crossover each other.
Last time this happened Nat gas had a 4-5 day parabolic move.
The bulls must be careful to not push this commodity up too quickly because it makes the pattern less likely to have a continued breakout.
We are still putting in Lower weekly highs, so the next test of the most recent pivot high is going to be crucial.
If the bulls can trigger the weekly inverse head and shoulder pattern there's going to be a great long continuation opportunity. Until we break the pivot high & create a higher high traders must use caution now that we've had a large move occur.
AR, EQT, CPK, LNG are all set to push higher if Nat gas holds these gains.
HighPeak Energy | HPK | Long at $15.75HighPeak Energy NASDAQ:HPK currently has a 19.5million float, 24%+ short interest, 12x P/E, and debt/equity ratio of 0.7x... all while insiders are loading up on shares (CEO grabbed $5+ million in August 2024). Something may be brewing. The oil and natural gas company's earnings are expected to rise into 2025 after taking a hit in 2024.
From a technical analysis perspective, the price for NASDAQ:HPK has been consolidating for some time now between $12 and $17. It won't trade sideways forever, but that doesn't mean it's only going up. Personally, with the amount of insider purchases and limited selling since 2022 while the stock is consolidation mode, I anticipate an upward move in the coming months or years into 2026. At $15.75, the stock is in a personal buy zone. There is a gap near $14.50 that may be closed in the near-term, but unless some abysmal company news emerges (which is counter-intuitive to insiders buying right now), the stock may be gearing up for a big move.
Target #1 = $17.40
Target #2 = $19.00
Target #3 = $20.00
Target #4 = $22.30
NATGAS Will Go Down! Sell!
Hello,Traders!
NATGAS is going up
From the horizontal support
Of 2.275$ just as I predicted
And now the price is approaching
A horizontal resistance of 2.529$
From where we will be expecting
A local bearish correction
Sell!
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Preparing for Winter: Accumulating Natural Gas and DBC ETFs in ATitle: Preparing for Winter: Accumulating Natural Gas and DBC ETFs in Anticipation of Rising Prices
Comment: As colder months approach, I'm positioning myself strategically by accumulating Natural Gas, expecting a significant price surge driven by tight supply and potential demand spikes. Additionally, I'm reinforcing my portfolio with the DBC ETF, which covers commodities within the same sector. With rising energy needs on the horizon, this could be the perfect storm for a strong rally in energy markets.
Natural Gas: Weak Day / Strong WeekNatural gas had a bit of profit taking today and you can't blame the bulls for trimming especially since we did the same.
The Daily chart now needs a couple days of consolidation before another sustainable push.
The weekly chart recaptured the 50 Weekly MA...very good near term sign.
This can now be used as a support level to trade against for very tight stoploss swing traders.
As long as we remain above the breakout neckline we should be likely heading to retest 2.75 & $2.90
Levels below can cause nat gas to fail and fall substantially. Alway remembers the Weekly trend still has Lower highs in place.
Natural Gas turning bullish? Natural gas has now cleared a major resistance zone and is looking poised to head higher.
We have a beautiful daily and potential weekly inverse head and shoulder pattern developing.
The micro daily chart bullish pattern has triggered and gives us another +8-10% of upside.
However the really juicy pattern is the potential weekly chart set up.
If we breakout of the $2.90-$3 range we have a massive potential move to the upside brewing.
Oil Is Heading Down In Price, Support at $72 Just Broke, Low $60The price of Oil was in a trading range between $72 and $85ish, this past week it broke down support and now is going to head lower, I suspect we can see $62ish at first level of support, but I think mid $50's is now on the table.
Why? Elections are upon us and they want to make costs come down, so it looks like they are curbing inflation and thus justify more rate drops. Also if Trump wins, he is talking about lower energy costs and ramping up production in the US, so the outlook is bearish for the energy commodities prices... as supply increases and demand remains the same, price goes down... and so the bear market starts.
Natural Gas waking up? Nat gas showed some poise today.
Holding green in a red market where most commodities saw negative price action.
This is impressive to see because Nat gas has a long historical trend of diverging from many commodities.
The price action today also saw a red to green reversal further emphasizing the positive potential trend shift.
Nat gas stocks were discounted today despite the stronger price action in the commodity.
We remain bullish and long UNG, our call positions in the money.
Waiting for NaturalGas to rise. H4 30.08.2024Waiting for NaturalGas to rise
Gas tried to break down to 2.00 twice and bought back twice.
And large volumes are now around 2.10 and defending.
If they are not pushed down, they may rise to the upper boundary of the flat to 2.30 and even 2.50.
Increased vertical volumes came in at the moments of buyback, which often coincides
with the culmination and turns the market.
Seasonal Strategies: Trading Natural Gas with a Tactical Edge1. Introduction
Natural Gas Futures (NG1! and MNG1!) hold a significant place in the energy market, acting as a key barometer for both seasonal and macroeconomic trends. These futures contracts are not just tools for hedging energy prices but also present potentially lucrative opportunities for traders who understand the underlying seasonal patterns that influence their movement.
Seasonality is a powerful concept in trading, particularly in commodities like Natural Gas, where demand and supply fluctuations are often tied to predictable seasonal factors.
2. Understanding Seasonality in Natural Gas
Seasonality refers to the predictable changes in price and market behavior that occur at specific times of the year. In the context of commodities like Natural Gas, seasonality is particularly significant due to the cyclical nature of energy consumption and production. Factors such as weather patterns, heating demand in winter, cooling demand in summer, and storage levels contribute to the seasonal price movements observed in Natural Gas Futures.
For this analysis, daily data from November 14, 1995, to August 30, 2024, has been meticulously examined. By calculating the 21-day moving average (representing a month) and the 63-day moving average (representing a quarter), bullish and bearish crossovers have been identified.
3. Analyzing Bullish and Bearish Crossovers
Bullish and bearish crossovers are critical signals in technical analysis, representing points where momentum shifts from one direction to another. In our analysis of Natural Gas Futures, such crossovers provide a clear indication of the monthly and quarterly trends.
The data reveals distinct patterns in the frequency and magnitude of bullish and bearish crossovers across different months:
Bullish Crossovers: Certain months, particularly March, April, and September, show a high number of bullish crossovers. This suggests that these months are historically strong for upward price movements, offering potential buying opportunities.
Bearish Crossovers: On the other hand, months like May, June, October, and November are marked by a higher frequency of bearish crossovers. These periods have historically seen downward price pressure, which could present short-selling opportunities.
The below chart further illustrates these patterns, highlighting the months with the most significant bullish and bearish activity.
4. Key Seasonal Patterns in Natural Gas
The analysis of Natural Gas Futures reveals distinct seasonal patterns that vary significantly from month to month. By understanding these patterns, traders can strategically plan to time their trades by aligning with the most opportune periods for either bullish or bearish movements.
January to February: Mixed Signals
Historically showing a balanced number of bullish and bearish crossovers. This suggests that while there are opportunities for both long and short trades, caution is warranted as the market can be unpredictable during this period.
March to April: Bullish Momentum
We see a shift towards more bullish activity. While there is still some bearish potential, the overall trend favors upward movements. Traders might consider looking for long opportunities during this period.
May to June: Bearish Pressure
The market shows signs of bearish pressure indicating a potential shift in momentum.
July, August and September: Summer Bulls
July and August: The bullish trend tends to be back but with a higher degree of volatility which may involve sudden market reversals.
September: Showing frequent up-moves with strong percentages. This month offers opportunities for traders to re-enter the market on the long side.
October to December: Volatile and Bearish
Bearish momentum and strong down-moves opening the door to shorting opportunities. Traders should be especially cautious in December with very high volatility in both directions.
These seasonal patterns provide a roadmap for traders, highlighting the months that are historically more favorable for either long or short positions in Natural Gas Futures.
5. September Seasonality Analysis: A Potential Buying Opportunity
September has historically been one of the most bullish months for Natural Gas Futures. Despite the common perception that autumn marks a period of declining demand for natural gas as the summer cooling season ends, the data reveals a different story.
Current Market Opportunity
Current Price: With the continuous contract of Natural Gas Futures (NG1!) currently trading around 2.18, the historical trends suggest that this could be a valid entry point for traders looking to capitalize on a potential price rally.
Historical Patterns: September has witnessed some of the most robust bullish activity, with the data showing a clear pattern of price increases. On average, September has seen up-moves of 36.45%, making it a standout month for bullish opportunities.
Trade Setup
Entry Point: Entering the market around the current price on NG1! of 2.18.
Target Price: Based on the historical average up-move of 36.45%, traders could set a target price around 2.98.
Stop Loss: To manage risk, a stop loss could be placed 11.28% below the entry price, around 1.93.
Probability of Success: Historical data suggests a high probability for this trade where 11 out of 13 trades produced bullish moves.
Conservative Approach
For traders seeking a more conservative strategy, setting a target at the UFO resistance level of 2.673 (instead of 2.98) offers a more cautious approach.
6. Trading with a Tactical Edge: Risk-Reward Analysis
The risk-reward ratio compares the potential profit of a trade to the potential loss. In our September example:
Risk: The stop loss is placed 11.28% below the entry price at 1.93, limiting potential downside.
Reward: The target is 36.45% above the entry price at approximately 2.98.
This setup offers a risk-reward ratio of about 1:3.2, meaning that for every point of risk, the potential reward is 3.20 points. Such a ratio is generally considered favorable in trading, as it allows for a greater margin of error while still maintaining profitability over time.
Point Values for Natural Gas Futures
When trading Natural Gas futures, it is essential to understand the point value of the contracts. For standard Natural Gas futures (NG), each point of movement in the price is worth $10,000 per contract. This means that a move from 2.18 to 2.98 represents a potential gain of $8,000 per contract with a potential for risk of $2,500 per contract.
For Micro Natural Gas futures (MNG), the point value is one-tenth that of the standard contract, with each point of movement worth $1,000 per contract. Therefore, the for same trade plan, the potential for reward and risk per contract would be $800 and $250 respectively.
7. Discipline and Emotional Control
Successful risk management also requires discipline and emotional control. It's essential to stick to your trading plan, avoid impulsive decisions, and manage your emotions, especially during periods of market volatility. Fear and greed are the enemies of successful trading, and maintaining a level-headed approach is crucial for long-term success.
8. Conclusion
The analysis of seasonality in Natural Gas Futures reveals a rich landscape of trading opportunities, especially when approached with a tactical mindset that incorporates probability and risk-reward analysis. By understanding the historical patterns that have shaped the market over the years, traders can position themselves to capitalize on the most opportune moments, whether the market is poised for a bullish rise or a bearish decline.
This September, in particular, presents a compelling case for a potential buying opportunity.
Ultimately, successful trading requires more than just identifying patterns—it demands a disciplined approach to risk management, a clear understanding of market dynamics, and the ability to adapt to changing conditions. By integrating these elements into your trading strategy, you can enhance your ability to navigate the complexities of the Natural Gas market and achieve consistent, long-term success.
As you apply these insights to your own trading, remember that while historical data provides valuable guidance, it is not a guarantee of future results. Always approach the market with caution, stay informed, and continuously refine your strategy based on the latest information and market conditions.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
XNG/USD "NATURAL GAS" Robbery plan in Long SideHola ola My Dear,
Robbers / Money Makers & Losers,
This is our master plan to Heist XNG/USD "NATURAL GAS" Mines based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Long entry. Our target is Red Zone that is High risk Dangerous level, market is overbought / Consolidation / Trend Reversal at the level Bearish Robbers / Traders gain the strength. Be safe and be careful and Be rich.
Note: If you've got a lot of money you can get out right away otherwise you can join with a swing trade robbers and continue the heist plan, Use Trailing SL to protect our money.
Entry : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Swing Low
Stop Loss : Recent Swing Low using 2h timeframe
Warning : Fundamental Analysis comes against our robbery plan. our plan will be ruined smash the Stop Loss. Don't Enter the market at the news update.
Loot and escape on the target 🎯 Swing Traders Plz Book the partial sum of money and wait for next breakout of dynamic level / Order block, Once it is cleared we can continue our heist plan to next new target.
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NATURAL GAS has bottomed. Excellent buy opportunity.Natural Gas (NG1!) has been trading within a Triangle pattern since the January 09 2024 High, so practically throughout the whole year and this week rebounded exactly on its Higher Lows trend-line, forming a technical bottom.
The buy signal gets even stronger as not only has the 1D RSI been on a Bullish Divergence this time (Higher Lows against the price's Lower Lows) but also the 1D MACD formed a new Bullish Cross. Both indicators are posting similar sequences to the Triangle's previous bottom in Feb-March.
As a result, being still below the 1D MA50 (blue trend-line), this is still an excellent early buy opportunity. The previous Bullish Leg peaked marginally above the 0.786 Fibonacci retracement level, so our Target is 2.900 (exactly on the new 0.786 Fib).
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