Natural Gas Short Term Sell IdeaD1 - Price is bouncing lower from a strong resistance zone.
Bearish convergence.
H4 - Bearish trend pattern
Until the strong resistance zone holds I expect the price to move lower further after pullbacks.
Natgassell
GAS Fibonacci Retracement - Long TradeGas Fib Retracement - Long Order
Entry: $2.407
TP & RR: $2.549 (3.38)
Stop Loss: $2.365
REASONS FOR THE TRADE
So far Gas has respected the Fibonacci levels twice, leading me to believe that we may see a bounce from the 0.236 level and a potential reversal. We also have a descending trendline, which I am not sure how well will be respected, but it's worth keeping in mind. The Stop Loss is set at a reasonable distance from the Fib level and the target is at the 0.5 level. Although, if a reversal follows from 0.238, we may keep at least part of our position for higher levels.
NATGAS SELL TP_2.261_15.32%_0.409pips_SL_2.751_3.41%_0.091pipsNATGAS SELL TP_2.261_15.32%_0.409pips_SL_2.751_3.41%_0.091pips
Gas Upper Trendline - Short PositionGas Upper Trendline - Short Trade
Entry: $2.845
TP & RR: $2.693 (2.08)
Stop Loss: $2.918
REASONS FOR THE TRADE
After the breakout from the descending channel, we see the price sliding up an inclined trend line. However, the price is now reaching major resistance and I believe there will be a small pullback before potential continuation to the 1.618 Fib Level. The Market Flow indicator is also starting to revert, indicating weakness.
The entry is somewhat conservative since we give the price some more room to continue up before we enter the trade. Opening a position against the trend is rarely a smart idea. The Stop Loss is well above the trendline, which doesn't give us a great RR, but at least we will have more time to assess the price action and potentially close the position if things are not looking too good.
Natural Gas (up or down) Pick your poisonIn my own opinion, since Natural Gas first landed on the market in 2004, it has 1 all time low at 1.574, which is lower than 2004 and since then we have never tested this bottom again. I think with news of coronavirus, it is the perfect opportunity for this level to be tested and i think it will go much further down creating a new low for natural gas.
DISCLAIMER
Please note that this chart is an opinion based chart only. Please trade at your own risk
NATGAS SELL TP_1.730_5.21%_0.095pips_SL_1.851_1.42%_0.026pipsNATGAS SELL TP_1.730_5.21%_0.095pips_SL_1.851_1.42%_0.026pips
Resistance Hit with Nat GasStochastic and RSI suggest we are at oversold levels while price action moves into strong support. Expected move upward.
