Natural Gas is very bullish!! Based on monthly view, it has crossed the mid of BB. I looked left of the chart with 8 years horizon and found that there were 3 instances where price crossed the mid and price started to consolidate there before deciding on the direction. However, there were 1 instance where price simply does not consolidate at the mid. Big picture tells us NG is very bullish while BB is narrowing and this usually mean NG going to trade at a narrow range soon. (Please note NG sometimes does not respect technical analysis, so be cautious as anything could happen)
In the daily view, there are 2 gaps. One at 3.464, the other at 2.716. There is another at ~1.97 which I consider as a breakaway gap - I am too slow to recognize that! I am watching if the gap at 2.716 is a ruunaway gap or a common gap to be filled soon.
Monthly support/resistance for Jul: 2.831, 2.626, 2.848, 2.675
There is a possibility that price could retrace to the monthly support/resistance at 2.831, holding below open the possibility to test the weekly support/resistance level, whereby consolidation could occur between 2.831 and 2.7.
Conclusion: I am open for a test of 2.831 as well as the bull euphoria to continue pushing price to the $3 range.
I will be very cautious going forward as NG has moved up too fast due to hot weather forecast without a nice correction. Could NG move up more? Yes it can, to close the gap above. I will be alert for the possibilities of closing the gap below as well and to wait for a nice correction to buy if there is any.
For the month of July, I will be watching for the resistance at the pink zone where cracking it open the possibility of touching the upper BB and closing the gap at 3.464. The yellow area shall be the area of support and I do think is a very strong support
As for gap up or gap down or flat on sun/mon opening? I do not know and do not want to speculate.
And Mon is US holiday and trading halt at 1300 EST.
Additional infor:
NG net position of managed money has been very bullish. Watching for the turn for signal of a correction.
In the daily view, there are 2 gaps. One at 3.464, the other at 2.716. There is another at ~1.97 which I consider as a breakaway gap - I am too slow to recognize that! I am watching if the gap at 2.716 is a ruunaway gap or a common gap to be filled soon.
However, the gap is showing at 2.73 in TOS platform. So I will be watching of for 2.73 and 2.716 gap if it is going to fill there soon.
On a weekly basis, the candle is one of the longest green candles. Usually after a long candle, there could be profit taking but I will be watching out for bull euphoria to continue next week.
Daily support/resistance on 4th/5th Jul: 2.972, 2.945
Weekly support/resistance for 4th-8th Jul: 2.7, 2.679 Monthly support/resistance for Jul: 2.831, 2.626, 2.848, 2.675
There is a possibility that price could retrace to the monthly support/resistance at 2.831, holding below open the possibility to test the weekly support/resistance level, whereby consolidation could occur between 2.831 and 2.7.
Conclusion: I am open for a test of 2.831 as well as the bull euphoria to continue pushing price to the $3 range.
I will be very cautious going forward as NG has moved up too fast due to hot weather forecast without a nice correction. Could NG move up more? Yes it can, to close the gap above. I will be alert for the possibilities of closing the gap below as well and to wait for a nice correction to buy if there is any.
For the month of July, I will be watching for the resistance at the pink zone where cracking it open the possibility of touching the upper BB and closing the gap at 3.464. The yellow area shall be the area of support and I do think is a very strong support
As for gap up or gap down or flat on sun/mon opening? I do not know and do not want to speculate.
And Mon is US holiday and trading halt at 1300 EST.
Additional infor:
NG net position of managed money has been very bullish. Watching for the turn for signal of a correction.
No comments:
Post a Comment