Saturday, July 23, 2016

Natural Gas Trading: Weekends Post for the week 25th - 29th Jul

NG made a surprise 2 days rally on Thursday and Friday. Look like the 1 hour chart, it seems to break the upper resistance of the falling wedge.


Even in the daily chart, it breaks the falling wedge upper resistance. Target is around 2.95, with possibility to close the gap above. However, confirmation needed on Mon.

In the monthly chart, BB is narrowing meaning price is consolidating at a range. However price is still above mid of BB which mean uptrend may be intact. So it probably going to consolidate for the next few month before NG make a more directional move.

In the weekly chart, the candle pattern looks like bullish rising three methods. We will have confirmation next week.

As long as price is above the weekly support/resistance, price is going to bullish for next week. Even though NG is looking bullish right now, we still have to be cautious as next week is expiration week. (Option expiration next Tues and contract expiration next Wed) and NG always do what it wants and gives traders a surprise. There is still a possibility of price touching the monthly mid BB, so be cautious until we have more confirmation.

Daily support/resistance on 25th Jul: 2.763, 2.728
Weekly support/resistance from 25th - 29th Jul: 2.758, 2.712
Monthly support/resistance for Jul: 2.848, 2.831, 2.675, 2.626

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