In the last 2 weeks prices of natural gas have lost nearly 12% off just under 50 cents in December futures. On the lows today my objective at $3.50 was achieved. With a 50% Fibonacci retracement complete dragging prices to oversold levels close out all bearish plays and look to reverse in the coming sessions.
The 50 day MA is being challenged as of this post identified by the green line. Let's see in the coming days if the 100 day MA comes into play identified by the light blue line. I have started to price out bullish option strategies as well as and long future entries are on my radar…stay tuned.
Once we get a buy signal traders should attempt to get long trying to capitalize on a trade higher into the end of the year. I see a trade north of $4 into the winter and would advise long entries to be buying early 2013 contracts to allow enough time for the trade to develop.
By. Matthew Bradbard
To discuss in more detail this chart or any other you can reach me at:
mbradbard@rcmam.com or 954-929-9997
Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific's investor's needs or investment goals. You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions ("Forex") before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice. Past performance is not necessarily indicative of future results.
I have over 1 decade of experience in the Commodities industry. Managing my own IB for over 5 years and my own CTA for fifteen… More