Natural gas' price action is best contained within a downward channel on the weekly time frame.
There are two possible bottom scenarios.
1st Bottom: Within the downward channel the price is currently within a falling wedge. This is the third touch to the bottom of the wedge which in many cases means the price is likely to go up from here. If the price happens to breakout of the wedge, the wedge gives us a target that is near the top of the downward channel which is around $4.
2nd Bottom: The 2nd bottom scenario is simply the bottom of the channel. The channel is very well defined so if the price happens to go this low, I think there is a very good chance that this would be the absolute bottom.
There are two possible bottom scenarios.
1st Bottom: Within the downward channel the price is currently within a falling wedge. This is the third touch to the bottom of the wedge which in many cases means the price is likely to go up from here. If the price happens to breakout of the wedge, the wedge gives us a target that is near the top of the downward channel which is around $4.
2nd Bottom: The 2nd bottom scenario is simply the bottom of the channel. The channel is very well defined so if the price happens to go this low, I think there is a very good chance that this would be the absolute bottom.
Note
Here is a better view of the chart above, particularly the downward channel.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.