Can XNGUSD short squeeze?XNGUSD on the weekly chart showing two years of price action with weekly candles
shows the rise in 2021 into spring 2022 then printing a head and shoulders pattern
and the reversal to deep into the support/demand zone. The volume profile shows
the majority of the trading during this time period to have been between $3.75 and
$ 8.50. It would seem likely that there are a sizeable amount of short sellers holding
positions with unrealized profits of 50% to as much as 300%. This past week had the
best buying volume in six months and provides bulls with optimism
If natural gas can gain some momentum and put in green candles with a decent price range for
a couple of weeks in a row, the combination of new buyers with new interest and short sellers
liquidating and buying to cover their unrealized gains might ignite a bit of a rally for natural
gas. I will keep natural gas on watch. I will keep in mind that a breakout without a
corresponding volume the response could be a fakeout. A stop loss would be $1.95 below the
support zone while the final target would be $4.75 below the POC line. Interval take profits
would be 10% of the forex lots every time the price rises by $0.50 for risk management and
good profit taking while underway.
