Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Natural Gas.
Trend Analysis
The main view of this trade idea is on the 2-Hour chart. Natural Gas has been in a rangebound or rectangular trading pattern since the end of June and is currently making another move lower towards 3.50 support. The key move will be a breakdown from support which will take the commodity towards 3.20.
Technical Indicators
Natural Gas is currently below its short (25-SMA), medium (75-SMA) and fractal moving averages and its RSI is trading below 50, heading towards oversold levels. Moreover, the KST is in a bearish move .
Recommendation
The recommendation will be to go short at market. At the time of publishing Natural Gas is trading around 3.61. The medium-term target price is observed around the 3.2 price level. A stop loss is set at 3.85. This produces a risk reward ratio of 1.77.
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Natural Gas.
Trend Analysis
The main view of this trade idea is on the 2-Hour chart. Natural Gas has been in a rangebound or rectangular trading pattern since the end of June and is currently making another move lower towards 3.50 support. The key move will be a breakdown from support which will take the commodity towards 3.20.
Technical Indicators
Natural Gas is currently below its short (25-SMA), medium (75-SMA) and fractal moving averages and its RSI is trading below 50, heading towards oversold levels. Moreover, the KST is in a bearish move .
Recommendation
The recommendation will be to go short at market. At the time of publishing Natural Gas is trading around 3.61. The medium-term target price is observed around the 3.2 price level. A stop loss is set at 3.85. This produces a risk reward ratio of 1.77.