NATURAL GAS: HUGE OPPORTUNITYHi guys, following my recent analysis on silver, i'm looking also at Natgas.
In my opinion this winter we'll see many problem in Europe and if governments try to save many countries, we'll see the price fall but then rise in the coming months, just after this winter.
Why?
Well governments will try to save countries in the short term "printing money" (i mean with interest rate, qe, etc) but then they will be forced to did a step back pushing the price up. Europe need gas, it's improbable to not see the price go up.
Be prepared and let's see.
Natural Gas
Natural Gas / NG - It's Officially a Bear. Now, Hold My BeerThis post is a continuation of a previous post, which is based on a longer-term analysis:
Natural Gas / NG - What, Truly, Is a Bull?
With Wednesday-Friday and Monday morning's long-awaited dump into the fabled double bottom around $7.4, natural gas can only be considered to have formally shifted into a bearish market structure, based on both the 4H and Daily candles.
Note that the dump also breached range equilibrium.
What this means, is that it's finally time to look for a 45-day short play on natural gas. Remember, Freeport is supposed to re-open for export to Europe in mid-November, so in principle you'd want to see the downside manipulation occur before then.
However, all this time, big firms have been shipping U.S. natural gas via boat to Europe, and making more than $100 million a shipment in the process . Demand has been so enormous that there aren't enough ships on the planet available to meet it.
So it's not that U.S. Henry Hub pricing hasn't reflected the demand problem caused by Europe shooting itself in the knees trying to spite Putin and Russia so it can fit in with cool kids in the Globalist Bloc. It has.
It's just that the reality is, no matter the news and how it's framed, an energy crisis is coming to North America too.
You just won't see it until inflation starts to dip. Energy prices have to come down for inflation to dip. Once inflation dips, it will rip again, because it hasn't topped yet. Anyone who says inflation has peaked obviously can't read The Diagram, and nobody who is unable to read The Diagram is worthy of being a Doctor.
Regarding price action, once something as turbulent as natural gas dumps, and dumps a lot, and takes out key pivots, you have to be careful. At present the market makers are still employing these patterns where they seek and destroy to the downside and then quickly seek and destroy the upside.
It's very hard to catch a truly trending market at the moment, and so you have to employ a surgical strike style of trading and positioning rather than trying to get long or get short and rack up the Sklansky Bucks comfortably.
For example, the stock indexes look like they're going to bounce, and probably hard, before the next big leg down, regardless of what comes out of Wednesday's FOMC:
SPX500 / ES - It's Still a Bull. Now, Good Luck Riding It
With natural gas, what I'm really looking for here to position puts for November is a bounce into the $8.9 range. The problem is, the natural gas market makers are not so polite. They don't want you along for their ride. It's their ride, and if you're good enough to figure it out, you can make money. But if you can't, they will buck you off and you can watch from the sidelines.
They're a lot like angry cowboys, and so there is a possibility that is far from negligible that a number like $9.6 prints again before we see the next move down.
Or at least a number that starts with $9.
Regardless, in my opinion, once this bear is finished growling and knocking over trees, we will actually begin to see trending markets again. They won't trend for all that long, but you won't get bounces this time. It'll just landslide or gap down to where it wants to go and collect all the badly positioned longs or the longs who somehow never took profit during a run to $10.
WTI Oil, likewise, is in the same boat.
WTI Crude / CL - An Intervention: Saving Blind Bulls
Although its price pattern is more notable in that it once again traded back to the $81 gap and bounced again. If it runs the $91 double top it left behind and keeps going up, it might just be a bull run again. But if it just crushes $91 and starts to fall, you can surely expect numbers like $69 and $50 are en route, no matter what the fundamentals say about global demand.
What you're ultimately looking at with the positioning of the markets, whether it be copper, soybeans, stocks, is you're looking at first some bouncing and then what is likely a market-wide sell off with some days of panic that is simultaneously subdued and overexaggerated.
All of which is designed to have you sell low and then buy back higher with half your account left intact.
Consider that last week's CPI dump took 200 points from the SPX in a few hours, but only raised the VIX by like 3 points. VIX 28 is now a ceiling. VIX 40-42 will be where you find the bottoms. VIX 72 will come when the markets truly start to head to the downside.
After the global avalanche is finished, you'll likely see the Nasdaq be extremely strong for a few months. SPX will be okay, but will be drug down by energy companies, which won't do particularly well because they'll be drug down by natural gas and WTI accumulating at low prices. Dow will probably be better than SPX but worse than Nasdaq on account of its defense contractors likewise accumulating at low prices.
Once retail is done gorging themselves stupid on $30 SNAP and $45 BBBY and $198 AAPL, reality will unfold. Stocks will crash, hard.
WTI and Natural Gas and other commodities (Except for silver and gold. Seriously. Quit being a moonboy on ancap stuff. It'll rot your teeth.) will make major new highs and energy companies and defense contractors will become the safe haven in the markets.
When those days unfold, you can expect major geopolitical turbulence, which can include as much as the collapse of the Chinese Communist Party. You can also see significant natural and manmade disasters unfold. It won't be a pleasant time. But you should know that what unfolds will appear chaotic but actually be orderly.
Everything unfolding in the world is orderly and well arranged. This world will not be destroyed, although there will be significant hardship for many regions, and few will find the outcome comfortable.
But for now, you can focus on trying to make money. You have the difficult task of trying to find a time to short natural gas inside of a 15% possible range. You can short $8.9, but they really might take that $9.3 pivot. If you wait for the $9.3 pivot, you might not get filled and miss the move.
This kind of move back up is also designed to dump the ETFs, many of which trade on 2x leverage (10% natural gas move = 20% ETF dump), so big pockets can get fat long for the real dump.
It's very annoying. They're really very annoying about how they do things. It's a constant gut check and a series of difficult and suboptimal circumstances, because time is an excellent weapon and they use it very well.
You should know that all the decisions you face when trading and all the loss and gain you come across are actually opportunities to cultivate your mind and your heart. They're chances to improve.
Every thought and feeling you have while doing this is you forging yourself like quicksilver being refined inside of a crucible powered by burning hydrogen.
Everything depends on how you improve your heart and employ your rationality. Fear and greed are your greatest enemies.
Natural Gas will rally, at least a little bit! 5-15% min.Economic Reasons:
- Natural Gas Nord Stream Sabotage
- Hurricane heading to US
Reasons for a trend reversal:
- Price is heading for a macro uptrend
- Key zone of support and liquidity
- 0.786 retracement from Aug. highs and Sept. lows ($6.33)
- Almost over sold on RSI and MACD on the daily chart. (it is over sold on lower timeframes)
- Bullish divergence on the RSI and MACD for the 4 hr. chart.
Take Profits:
$7.12 (Highest Probability) -- 12% profit
$7.45 -- 17.6% Profit
$8.11 -- 27.6% Profit
$8.60 (Most Likely Top) -- 36% Profit
$9.22 -- 46% Profit
Bearish after rally:
- Completion of the right shoulder of a head and shoulders pattern.
- Break neckline and return to $3.5-4.5's
BOIL | Winter is Coming | Nat Gas ETFThe fund seeks to meet its investment objective by investing normally in Natural Gas futures contracts. It may also invest in swaps if the market for a specific futures contract experiences emergencies (e.g., natural disaster, terrorist attack, or an act of God) or disruptions (e.g., a trading halt or a flash crash) or in situations where the Sponsor deems it impractical or inadvisable to buy or sell futures contracts (such as during periods of market volatility or illiquidity).
NATURAL GAS NEAR DEMAND ZONENatural Gas has seen a sharp fall within past few weeks from 9.051 to 5.480 within 7 to eight weeks only. This is more than 35% fall. Now it has reached near the major support zone where there was high demand during the July month, we can buy Natural Gas now and aim for 6.508 price level
Natural Gas | Need More LowThursday, 20 October 2022
16:13 PM (WIB)
Natural Gas is entering a bullish area as it broke 61.8% but still heading to 78.6% or even more low.
I’m expecting the price could hit the ground support for more easy and minimalist risk to trades.
If the price reaches the ground support, the Head and Shoulder Structure Patterns would be the best direction to trade.
Oct 19,22-NG down to 5.5-going all in BUYSo price action has continued to fall and I'm leveraged a bit now. I put in another Buy order at 5.5 wondering if tomorrow is the day when price action rebounds because of the storage report. Who knows - it's anyones guess. Price might fall down to 5, I dunno.
But if it rebounds tomorrow, I'll be in good shape. Price has continued to fall because of warmer than expected weather across the U.S. throughout Oct and into the beginning of Nov.
As soon as that first cold snap comes, I will be sitting pretty to take advantage.
Stay safe all.
Heiko
EQT Natural Gas Domestic Player will Top Soon$50-52 in a week or two would be ideal
this is over-cooked and the macro-tailwinds can rapidly become headwind
anti-ESG sentiment is at all time highs
People are now conditioned to believe in a Fossil-Fuel Super Cycle, to protect them against failing Tech investments from 2021
Oct 17,22-NG Put in a Buy Order @ 6So price action has dropped like crazy for NG...I still have my Buy order at 7 so I added another Buy order at 6.
I think the lowest price will go will be around 5.5. I will put another Buy Order in at 5.5 if it gets that low, otherwise I will ride the price action back up to infinity and beyond!
ok....maybe just to 10 or so.
Anyway, stay safe everyone - as you can see, price action is now OUTSIDE the Linerar Regression Indicator so price should be going up any week now. Not to mention the War and the Winter and Euro and Asian NG prices skyrocketing...anyway.
Heiko
NATURALGAS - Breaks out the range ✅Hello traders!
⁉️This is my analysis on NaturalGas .
Here we are in a range for couple of weeks, I expect price to break out the range to fill the imbalance and then to reject from resistance.
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