We love when a plan comes together: Natural gas position review
|In our previous edition published last week, we projected that if the market (Henry Hub Natural Gas (NGX21) Futures) broke below $5.480-5.568 support, we would then readjust our long position to lower levels above $5.073-5.147 support.
So, this is exactly what the market did (after rebounding a few times on the same level), and thus an opportunity arose on Tuesday to enter just above this new projected support (just look how prices got rejected back up after almost touching it…).
We suggested that an appropriate stop would be placed just below $4.766 in order for a target to be $5.663-5.790, and the market hit that target yesterday by topping at the $ 5.964 level on the futures contract! – See Fig. 1
Trading Chart
Figure 1 – Henry Hub Natural Gas (NGX21) Futures (November contract, daily chart)
Our trading approach has led us to suggest some long trades around key supports, as natural gas recently offered a few opportunities to take advantage of dips onto those projected levels.
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