Bull's trend in Natural Gas is ready for its reversal
Updated
https://www.tradingview.com/x/rzSxqaiE/
The recent uptrend in
NATGASUSD is ready for its reversal based on two bearish divergencies: RSI (relative strength index) and MACD. I also don't see much of volume which would support current enthusiasm of the bulls. Based on my observation of the NATGASUSD almost over a year, the price level of 3.00 can be broken due to extreme weather conditions which are not expected in the foreseeable future.
It's time to open a long position in AMEX:DGAZ if you want to catch the downtrend.
I expect the level of 2.9 being tested next week.
The recent uptrend in
NATGASUSD is ready for its reversal based on two bearish divergencies: RSI (relative strength index) and MACD. I also don't see much of volume which would support current enthusiasm of the bulls. Based on my observation of the NATGASUSD almost over a year, the price level of 3.00 can be broken due to extreme weather conditions which are not expected in the foreseeable future.It's time to open a long position in AMEX:DGAZ if you want to catch the downtrend.
I expect the level of 2.9 being tested next week.
Trade active
I continue to think that the reversal is coming is this bull trend for NG. There's a bearish divergence on 4H chart (MACD) and neutral divergence on RCI (4H chart). I still think that this uptrend doesn't have a strong support in form of good volume and its momentum is fading and facing sideways (you can see it on RSI). I also think that this uptrend is purely speculative and intend to scare traders out of their positions. I remain long with DGAZ.
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