Murali Sarma
Trade Guidance, LLC
Natural Gas prices continued its’ chiseling price action lower yesterday and held to slide on Tuesday but held the line in the sand at 2.650 moving one-tick lower but saving itself from price annihilation. Demand is clearly under pressure as the weather forecast into the holidays is expected to be warmer than normal for most of the United States especially in the traditionally colder belts of the mid-west at least for the next 2-weeks. Hurricane Iota was downgraded to a tropical storm causing sustainable damage in regions of Nicaragua and there is no real expectation of disrupting any US Natural gas infrastructure including the southern regions. Demand over the near-term horizon therefore has fallen, driven by lower building consumption.
Natural Gas futures are still trading the December-20 expiration contract unlike WTI Crude which has seen brokerages roll to the first front-month of the upcoming year [Jan-21].Ironically, the price has a nice long setup leading into the extended timeframe short which we present below in an easy to read and trade tabular format. At TradeGuidance, we try to give our readers actionable trade ideas that they can run with during the intraday trading hours and not have to sweat the small stuff by carrying positions into the overnight timeframe when a whole lot of information becomes unpredictable from global events at least in the short term. Trade with stops and always learn to only risk what you can afford to lose.
Trade ideas
Counter-trend long setup
Trending short setup
Risk Disclosure: Futures, forex, currencies and stock/options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Past Performance Disclosure: Past performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between actively monitored performance results and the actual results subsequently achieved by anyone using any trader’s newsletter service. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of actual or simulated performance results and all which can adversely affect trading results. Although TradeGuidance never presents hypothetical or simulated trade results, all trades presented can be in a simulated using back-testing to demonstrate similar results.
Recommended Content
Editors’ Picks
EUR/USD consolidates gains below 1.0750, upside potential seems limited
The EUR/USD pair consolidates gains around 1.0745 during the early European session on Wednesday. Data released on Tuesday showed that the annual inflation rate in the Eurozone cooled down in June, in line with the market consensus.
GBP/USD flat lines below 1.2700, looks to US data/FOMC minutes for some impetus
GBP/USD lacks firm intraday direction on Wednesday amid mixed fundamental cues. August BoE rate cut bets cap the GBP ahead of the UK general elections on Thursday. Traders also seem reluctant and prefer to wait for the release of the FOMC minutes.
Gold eyes a range breakout, as Fed Minutes looms
Gold price is trading around a flatline near $2,330 early Wednesday, as traders consider the recent US jobs data and Federal Reserve Chairman Jerome Powell’s speech, bracing for yet another busy US calendar.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin struggles around $64,000 level
Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.
UK election update: Labour slips in the polls, but remains trusted with the economy
With one day left before the election, the polls suggest that it will be an easy win for Labour, the question is the magnitude of their victory. The final polls before election day have seen support for Labour slip.