NGAS
Update CHK: Position is hedge but performing VERY wellChesapeake is likely to see some real buying into April if section 232 tariffs on Uranium are passed (high probability)
Natural Gas needs a little push to setup a breakout!As you all know by now, I believe this is an event-driven outcome due to section 232 tariffs on Uranium. The decision will be made in April with a high probability it is passed. The blowback is likely higher electricity costs from Nuclear, natural gas is an alternative base load energy.
UPDATE: Nat Gas part II, 200% upside in CHKI don't like to post about single equities due to the balance sheet risk they propose, this is a company I have bought to take advantage of the outcome of section 232 as mentioned in the earlier update on Natural Gas.
manage your risk effectively and don't be a blind sheep, this is not advise!
Natural Gas Forecast and Trade OpportunityLow storage level (relative to historical norms) is making the price extremely susceptible to changes in the weather models. Instead of pushing the price higher gradually by 5-10 cents a week, bullish changes in the short-term weather models create fear, which results in double-digit rallies over the course of a single trading session, as happened on Monday, January 14.
The bullish changes in the weather models are resulting in an extremely exaggerated bullish change in natural gas prices. Prompt-month contract price can reach high levels and then correct sharply even if the weather turns only slightly bearish. In other words, prompt month contracts (February contract and, to a lesser degree, March contract) are very speculative and very risky to trade right now.
The best strategy in Ngas February and March contracts can be buying the dips at the strong support levels.
Looking at the NGAS February contracts, the price is testing the EMA 50 and Ichimoku Cloud support. We also see a bullish flag formation on the H4 Chart.
We will try Long at this support.
NGAS: Potentially a massive long term bottom hereI think technicals suggest we could be seeing a huge bottom in $NGAS here, I'm long from this spot, aiming for a retest of the monthly mode resistance above, which will probably send the price sideways for a long time but can eventually result in a strong rally out of this zone, aiming for a surge towards $4+.
Very interesting chart, and certainly not moving together with anything else, which makes it a very good trading instrument to follow.
Cheers,
Ivan Labrie.
NGAS a daily 0.618 and demand zone combination!NGAS just broke its triangle consolidation to the downside, and the selling pressure is just huge!
Here we got a very important spot at around 3.500-3.540,which is a daily 0.618 and demand zone combination trade!
Still, the selling pressure here still worth attention, so a nice reversal sign is crucial for this trade!
Let's see how it goes yo!