Natural gas - liquidity grab at 2.12 - 2.18
There are many factors why natural gas is going down:
*Hedge funds and large speculators are still net short
*Retail traders and non-commercials are net long and still not wiped out yet (CBOE and FXCM proprietary data)
*Seasonal variation (warmer than usual summer in northern hemisphere = less demand for natural gas)
*Liquidity still available at 2.12 - 2.18 levels - significant POI including the previous quarterly VWAP (pqVWAP) at this level
*Loosening of sanctions against Russia = more supply of natural gas
The bounce at 2.12 - 2.18 may only small before further downside/sideways price action. Best to leave this trade alone until the dust settles and new support forms on the lower timeframes.
*Hedge funds and large speculators are still net short
*Retail traders and non-commercials are net long and still not wiped out yet (CBOE and FXCM proprietary data)
*Seasonal variation (warmer than usual summer in northern hemisphere = less demand for natural gas)
*Liquidity still available at 2.12 - 2.18 levels - significant POI including the previous quarterly VWAP (pqVWAP) at this level
*Loosening of sanctions against Russia = more supply of natural gas
The bounce at 2.12 - 2.18 may only small before further downside/sideways price action. Best to leave this trade alone until the dust settles and new support forms on the lower timeframes.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.