Natural Gas futures charts looks to be setting itself up for a bigger push higher, with the current correction showing signs of confirmation..... (if the retest of the neckline is successful or if price drops to its target)
Using line charts its easy to see the H&S pattern. Also compared to RSI, there is a clear divergence that was formed. Both the H&S and Divergence are not that easy to spot with a Candlestick or OHLC bars.
Key Points:
Don't short.
Wait to go long on a correction at 4.4 - 4.33 region (it represents a confluence of divergence + H&S target) + any bullish candlestick pattern at those levels would be a bonus
Stops come in at 3.94 (lowest low from previous S/R levels) + some pips as NG does have a tendency to take out the obvious stop levels
Book profits at each of the H&S levels (but leave enough room for swings) leaving the rest of the trade to trail the trend
Word of caution: NG futures in recent days has seen some crazy wild swings, so make sure there's enough capital to cover these swings
Using line charts its easy to see the H&S pattern. Also compared to RSI, there is a clear divergence that was formed. Both the H&S and Divergence are not that easy to spot with a Candlestick or OHLC bars.
Key Points:
Don't short.
Wait to go long on a correction at 4.4 - 4.33 region (it represents a confluence of divergence + H&S target) + any bullish candlestick pattern at those levels would be a bonus
Stops come in at 3.94 (lowest low from previous S/R levels) + some pips as NG does have a tendency to take out the obvious stop levels
Book profits at each of the H&S levels (but leave enough room for swings) leaving the rest of the trade to trail the trend
Word of caution: NG futures in recent days has seen some crazy wild swings, so make sure there's enough capital to cover these swings