Nat Gas anyone?

Price is starting to stall inside the 4 week old gap. There is strength in the selling (as expected) inside this gap. However, the buying is also holding the bottom of the gap which I find a positive for my trade. It will now come down to which side as the most volume OR which side gives up first. I suspect there may be ranging to come for the rest of the week, until something fundamental happens.

Closed

We appear to have cleared the gap, and it now looks like price may return for a retest of this same area. I have reduced risk on this trade and will hold in for a target of 400+ pips

Nice trade champ!

Good Morning (West Coast US)...

Looking at the Nat Gas market is showing a retest of the last two major gaps. The buying that closed the lowest gap appears to have enough liquidity to absorb selling in this same area. (pointed out with the crudely drawn arrow). I read a report over the weekend that showed there were a great deal of shorts holding into this market. The largest in fact since 2016. So my feeling is..."If everyone is short, who's left to send prices lower?" I think the biggest challenge for me will be to keep my stops out of the way of my trade. I'm growing more confident that a bottom is (or already has) formed and that we will see choppy price movement, and perhaps some spikes both up and down to shake out the weak participants. Bumpy Road Ahead

Seems like a nice setup to me (NG Daily continuous contract)

It seems it want to go lower on H1.

Looks like there's some support at that Feb 14th close. However, I tend to agree with you. I wouldn't put too much stock in that support holding.

Must admit that I am a little of on the NGAS atm but how (much) do you people count the CORONA and SEASONALITY components in your trades or trade plans?

printing new lows on H4

It's all about supply and demand affected by the weather. SEASONALITY play a big role but this year mild winter & overproduction leads to lows prices

disappointing numbers and bad weather forecasts resulting in new lows. The 1.6x area (support zone) come in sight

So it might be a terrific opportunity to go short, then?

Mm, maybe not. The WSJ had a thing the other day, I read out of interest. The high cost frackers are pumping away despite NG being below cost coz they are suffering under high borrowing costs and need the cash to keep the bankers happy.

I suspected it might be something like that, combined with the big boys also pumping away to try to put those blokes out of business. For good, kinda thing, if Bernie doesn't get his way first.

new lows printed

quick scalp on 1 minute chart

Don't know if we seen the lows but higher time frames turning as well. Weather isn't favoring the bulls but some production cuts might be enough to set a floor around 1,6xx area

H4 still not able to break 1,76 levels curious about the development