Updating Key Levels and Opportunities in Natural Gas UNG

Bycjrosen

I had a question about Natural Gas this morning and found something interesting on the current chart – note the key levels and breakout opportunities that are setting up currently.

Let’s see these levels and highlight the key targets and structure moving forward:

The indicator-heavy chart above shows the trend, spike in bullish (buy) volume going into November, and the two recent sideways trading ranges.

“Value” or a key pivot point (current support) exists near the $4.200 level as price is likely moving up through the yellow highlighted region toward the prior high near $4.700.

We can zoom-in on these specific levels and build short-term trades on the pure-price charts:

The chart above is the Natural Gas continuous futures contract (@NG) on the Daily frame with a Fibonacci Retracement grid as drawn.

Our key levels – at least from a Fibonacci perspective – include 4.067 and 4.443 (roughly 4.070 and 4.440).

I think the UNG (popular ETF) chart shows an even clearer perspective for key level/trade planning:

We see a slightly different Fibonacci Grid that overlaps both the trading range low at $21.00 per share and $23.50 per share.

The midpoint or short-term resistance exists near $22.20.  Use these three reference levels for playing “ping-pong” trades between these levels.

Otherwise, a clean breakout beyond $24.00 does suggest a trend reversal and bullish play back to the $26.00 prior high.

We’re in a neutral zone between $21.00 and $24.00 with a short-sale breakdown potential triggering under $21.00 (targeting $19.00 again).

Follow price between these levels and await a breakout from this sideways value area range (rectangle).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

Similar Posts

| |

A Comparison of Recent “Unprecedented” Rallies in the Dow Jones

Bycjrosen

You may have been hearing commentaries about the “unprecedented” rally we’re experiencing that doesn’t seem to want to peak any time soon.

I thought it would be a good idea to look back on recent rallies from 1995 forward – using the Dow Jones as a proxy – and compare prior “non-stop” market rallies to the current rally phase off the March 2009 low.

While not earth-shattering, the charts did turn up some interesting observations. Let’s see them.

SP 500 Forms Cradle Buy

Bycjrosen

The moment Bulls have been anticipating has arrived:  The S&P 500 Index officially formed a “Cradle Buy” signal with today’s bullish action (also known as a “Golden Cross”).  Let’s see this up close and discover what it might mean. Before we get to the cradle, let’s look at the “Three Push” pattern, or Triple-Swing Positive…

May 18 Checkup on Bullishly Diverging Market Internals

Bycjrosen

What are the “Big Three” Market Internals saying about the current structure in the S&P 500? Let’s take a look: I shared this chart in yesterday’s Idealized Trades member report, and we’re already seeing the bullish follow-through today that was suggested from the picture in Market Internals. To recap, the “Big Three” Internals are Breadth,…

|

Charting the Cross Market Inflation Fallout from QE2 Stimulus

Bycjrosen

The topic of QE2 and endlessly rising markets has been the talk of the town lately – and for very good reason. Let’s take a quick objectively look at some of the cross-market charts with a focus on trend and percentage change since the July period, including August 27th when the first rumors of QE2…

One Comment

  1. Understanding the key levels is vital and can be the game changer while I normally don’t prefer to trade in these but still knowing about it is great since it also affect currencies as well where I trade and currently I am having over 50 currency pairs to deal with all because of OctaFX broker, it has many more options like allowing us to start with just 5 USD and also providing outstanding customer service that is ready to help us in any situation.

Comments are closed.