NATURALGAS - Aggressive Short Term ShortUltimately I am bullish on Natural Gas in higher time frame and so this is quite an aggressive short trade.
But that said it appears quite obviously to have completed AR Automatic Rally as a bearish ascending channel with overlapping highs revealing upside weakness.
This next wave down would complete ST Secondary Test . There is high liquidity below the low @ $2.061 and that will attract price. There is a reasonable that it will print a lower low to tap the liquidity and print ST.
And so a big shakeout dump is probably coming.
Currently it is pressing down on the 50 day MA and will likely fall through soon.
There is a little upper wicked shooting star candle and the selling pressure in that area gives us a clue that upward momentum has been halted and we're close to the next move down.
The star candle allows quite a tight stop loss just above and so margin can be increased for this trade.
3 targets for this trade:
1st target is the 0.618 retracement: 2.393. This is a 2.6:1 RR trade.
2nd target is the 0.786 retracement: 2.241. This is a 4:1 RR trade
3rd target is the low: $2.061. This is a 5.6:1 RR trade.
SL: 2.781
TP1: 2.393
TP2: 2.241
TP3: 2.061
Not advice