NG proces have been consolidating @ the 23.6 fib retracement levels, any stock during an uptrend dont tend to retrace more than 50% . We are expecting NG to move upside and probably break previous or might atleast make a double top...
The price is taking considerable resistance against the dynamic resistance/trend line.
A strong price rejection can be seen in 4 hours time-frame. This could attract more sellers or even make the existing buyers to change side.
Overall a channel is formed. However, we can see more or less similar volume of buyers and sellers during both corrective and impulse...
The price is consolidating near the recent resistance zone of 1.685 to 1.705.
This implies buyers were able push the price till resistance; but sellers are not strong enough at the resistance point to push the price lower.
But, buyers are able to hold it higher. Anytime the price can burst to next resistance of 1.768 to 1.778.
Hence buying is recommended at...
Ascending triangle pattern is seen in NG (like in crude yesterday), this implies buyers are in control.
The price comfortably closed above the triangle's top (1.730 zone).
Buyers can push the price higher from here till next supply zone of 1.825 to 1.850. Post which they would take a breathe or rest - will be decided later.
As of now, its a temporary buy.
After the successful retest, no harm in getting bullish Natural Gas.
Seasonal tendencies are Favourable during this time.
BUT one thing that is concerning me is Commercials getting Bearish.
But that can happen and its OK.
Still my advice is to keep a strict stop loss and TRAIL it.
In Continuation with my Last weeks commentary,
I am patiently waiting the test of the Breakout AREA.
However keep in mind, The intensity and structure of the test will be very crucial before taking a decision to go Long.
But Seasonal s and Technical s Favour LONGS.
Happy Trading NG!!!