Cup and Handle Pattern on Natural Gas near breakout line
Updated
The chart shows a classic "Cup and Handle" pattern forming on Natural Gas prices, suggesting a potential upside move upon breakout. The pattern consists of a "U"-shaped cup, indicating consolidation and recovery, followed by a handle representing short-term consolidation. The resistance line at the cup's peak marks the breakout point, signaling a bullish continuation once breached.
For trading, initiate a long position upon a confirmed breakout above the resistance line and wait for a retest as support. Set the stop-limit just below the resistance line to minimize potential losses. The profit target is around 27, based on the next highest high from January 2024.
For trading, initiate a long position upon a confirmed breakout above the resistance line and wait for a retest as support. Set the stop-limit just below the resistance line to minimize potential losses. The profit target is around 27, based on the next highest high from January 2024.
Note
Chart is playing out nicely, waiting for a pullback to the 'top of the cup' for more entry from resistance confirmationTrade closed: stop reached
Support was broken on NG1! futures and I have closed this trade down. First profit target was taken, and support was broken and stop loss hit for a small profit.
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