Daily Chart for Natural Gas 29/01/2020
Weekly Chart for Natural Gas 29/01/2020
The way I see it, this is a classic case of trading within the channel. Mind you, people draw their own channels. To each his own, I would say. But for me, I like it when my channels cut through a breakout and breakdown and hits as many highs or lows. When it encapsulates many, it will mean that the trendlines are valid. As above, it is perfectly clear that NatGas is doing its downward tango. There is this saying that do not try to halt a charging wild boar, or do not attempt to catch a falling knife. However true, this kind of trend is also beneficial in order to earn both ways. Short at the upper, long at the bottom with a decent amount of SL to begin with, to prevent wipeout. For now, any long entry below 1.9 with an SL of around 1.8ish looks prudent. Stay away from margin, perhaps at most x2, but that's about it.
Edit 31/01/2020: At the time of writing, NatGas has dropped to 1.822. Oh my, this is not looking good, the momentum is strong in this one. Speaking of commodity, even black gold is nearing strong horizontal support at 50. So how now?
Edit 31/01/2020: At the time of writing, NatGas has dropped to 1.822. Oh my, this is not looking good, the momentum is strong in this one. Speaking of commodity, even black gold is nearing strong horizontal support at 50. So how now?
Disclaimer: This is not a call to buy/sell. It is simply the way I write to discuss and justify my decision. Everything in this blog is a work of fiction based on true events on this earth.
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