Natural Gas Bears Could Turn Hostile Above $7
NG
-1.98%
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After a reversal from the weekly low at $6.046 in the daily chart, it looks like natural gas bulls are trying to test the 200 DMA once again.
No doubt bears could turn hostile above the next psychological resistance at $7 as the natural gas futures enters this ‘trapping zone’ once again.Natural Gas Futures Daily Chart — Trapping Zone
I find that bulls could be easily trapped above $6.065, especially if they try to cross $7.048 in today—as the wobbly Wednesday will followed by the Thanksgiving holiday, and Friday will have an early closing session.
Despite growing strength, wild price swings show a nosedive move soon as the bulls are currently walking the tightrope above $6.6 and a fall could bring prices to $5.6 before this weekly close.
Bears could trigger shorts at $7.048 with a Stop Loss at $7.284 (3.35%) to hit the target at $5.876 (16.63%) profit.
Natural Gas Futures Daily Chart — Expected Trading Zone
No doubt risk is there; but the risk-reward ratio looks impressive at 1:5.
The choice is yours. However, this is my view on the basis of the observations of the movements of the Natural Gas Futures and the news inflow during this month.