• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours NordStream2
  • 9 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 3 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 14 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 2 days Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 3 days Storage of gas cylinders
  • 4 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
Why Tesla’s Latest Battery Decision Is A Gamechanger

Why Tesla’s Latest Battery Decision Is A Gamechanger

Tesla delivered yet another incredible…

Oil Prices Will Remain High For Years To Come

Oil Prices Will Remain High For Years To Come

Massive underinvestment and multi-year supply…

Oil And Gas Stocks Are Popular Once Again

Oil And Gas Stocks Are Popular Once Again

Energy stocks, particularly oil and…

Editorial Dept

Editorial Dept

More Info

Premium Content

It's Time To Trade Natural Gas Again

Over the last five or six months, natural gas has been a dangerous market in which to play, with massive intraday swings being part of sustained long-term moves punctuated by big corrections. Usually, I love to see volatility, because, without it, traders can’t make money, but in this case, it has led me to largely leave natty alone. I am sure all this swinging around made sense to some people, but to me, there seemed to be a randomness to it that put me off, especially as there was good, and to me more predictable, movement in crude over that time that offered plenty of opportunities.

Right now, though, some basic chart reading suggests that we are in a position that sets up a logical trade with a fairly close stop loss and a good risk/reward ratio.

As you can see from the chart above, front end natural gas futures (NG) broke below their 50-day MA (blue line on the chart above) on Wednesday, the first time in four months that that level had even been approached. That leaves us between the 50- and 100-day (yellow line) averages and sets up a possible trade.

This morning, we have recovered a little, taking us back close to the 50-Day MA and shorting NG on the assumption that that level will become a point of resistance would make sense. That is especially true given the strong downward trend with corrections that has been evident all this month. If I take that trade, though, I will want to protect against a break back above the MA. That would…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News