Is It Time to Get Bullish on Natural Gas?
Natural Gas is Starting to Look More Bullish
Nat gas has had a rough go since November this year. It has lost over 20% of its value since. The unseasonably warmer than usual weather in the norther hemisphere and the slow global economic growth has held down the commodity.
More recently nat gas was consolidating near its lows with a bear flag type of wedge pattern. It seemed as if the commodity was forming a local bottom on the charts.
Gap Up
This may have very well been the case since the price has opened with a gap up out of this bottoming wedge to start the new year with over a 5% jump. That is a big move for a commodity. But you might want to wait and see how the day finishes up before jumping into any long positions.
Bullish Breakout?
When you look at the daily candles you can see how it appears that the price is climbing out of this downtrending channel. It is still too early to call it but the technical picture is looking like a bullish swing opportunity is in the works.
Indicators are Becoming Slightly More Bullish
We can even see a bullish cross on MACD and RSI is moving above its 50 value. These are two bullish notions.
Conclusion
Personally I was especially bearish towards natural gas until I saw this gap up to start the year. I still need to see a little more upward movement before I can be confident in bullishness for the short-term picture. If today finishes strong then I might consider getting some $United States Gasoline Fund Lp(UGA.US$ for a bullish swing trade. But I will be very skeptical because I have not seen any lagitimate reason for the pop in price.
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
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SpyderCallOP : @ThirtyOne
Check it out. I know you were asking about $United States Gasoline Fund Lp (UGA.US)$ the other day. We might see a swing up soon. I'm still trying to decide wether to go long or not. I can't find any news or any type of catalyst for this pop so I am still skeptical.
ThirtyOne SpyderCallOP: I appreciate it! Yea I have been watching this with UNG
TinkerB3ll SpyderCallOP: Agree personally now look to go long but again NG is so highly manipulated
SpyderCallOP TinkerB3ll: That is exactly why I am skeptical. I feel like the manipulation could be at its highest ever since the Russian war/Nat gas supply issues.
Ultratech TinkerB3ll: ng is heavily shorted that's why kold when ung is high
SpyderCallOP Ultratech: KOLD and BOIL are great leveraged tickers for nat gas
