Possible long term bottom in natural gasAfter a potential exhaustion gap yesterday, prices have recovered which increases the probability that yesterday was indeed an exhaustion gap. The price chart is forming a potential falling wedge and cup and handle failure pattern with an RSI divergence.
I suggest taking a trade:
Enter with 1/3 position now. Add 1/3 if prices close above 2.62 and add the last 1/3 if prices close above 2.72.
Stop: close below 2.40.
Target: exit 1/3 around 4 level, 1/3 around 6 level and last 1/3 around 9-10 level
Note: This is a position trade for well capitalized accounts only. Use only Nat gas futures, do not use an ETF such as UNG. UNG is useful only for extremely short term oriented trades and is not suitable for longer term strategies. The risk for the trade should be about 0.5%-1.5% of the total trading capital and according to personal risk preference. If your account size does not permit such an allocation do not take the trade, this trade is not for you.
Whoever chooses (can go) with the trade good luck.
This is not investment advice and you are solely responsible for your actions. For a full disclaimer see here: www.highprotrading.com
For a full list of instruments traded in the lifetime of the portfolio and for performance go to the Performance section: www.highprotrading.com
