Natgas Trend

    Anyone have any comments on nat gas?

    Posted by racerick on 4th of Dec 2014 at 04:36 pm

    I agree with you, it does seem that way sometimes here, that everyone looking for a reversal instead of continuation. However several of us were talking about yesterday about NG and a lot depends on whether you're trading the futures or a stock/ETF. If you're playing a stock then I've found it hard to trade short term charts, ie 5-15 min on commodity based products, because they can be rather volatile based on the underlying, so I tend to play 30min - 4 hour charts if playing those because most commodities do tend to trend for a few days generally unless you're at an inflection point. SEe DGAZ 30min - could have bot when it broke the 50ma last week for a really nice trade. But I'm not interested in buying it here.

    Natgas had a couple of opportunities to short today, see chart below. However the first opp, when it took out yesterday's and overnite low was right before inventory was released and no one here is that crazy to hold into on oil or NG inventory number, that was the big spike down to S2 at 10:30. The only other opp was on re-test of S2 at 1:50 and notice no divergence up there, so you'd basically been hoping.

    As far as looking for a bounce, well it is down nearly 25% in less than 10 days, historically going into Winter not the time you want to be short though generally most the upward action comes after Xmas. And it's sitting right on 200ma and regression line on the 5 year weekly. Will they hold and it bounce from here, who knows. But the point I'm trying to make there wasn't any really good signals today for a short

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