Have you ever tracked your progress during your oil and gas trading journey and seen such trades?
In the previous edition published last week and updated on Monday, I projected the likelihood of a sturdy support level on the gas market – Henry Hub Natural Gas (NGZ21) Futures – for going long around the $5.268-5.361 zone (yellow band), with a relatively tight stop just below $5.070 and targets at $5.750 and $5.890.
So, the market indeed sank just below that band to trigger an entry on Monday, and then it was suddenly pushed back up by the bulls waiting to take over the price to the upward direction.
This long trade was also supported by the fundamentals, as the heating needs for the month of November were gradually increasing. The weather forecasts appeared to orientate the demand upwards backed by an uninterrupted demand for Liquefied Natural gas (LNG) U.S. exports.
Then, natural gas hit the first target at $5.750 on Wednesday, and stopped at the $5.876 mark – located just $0.014 below the second projected target at $5.890 – on Thursday!
Regarding crude oil, a new entry, provided to our premium subscribers on Wednesday has just being triggered. The black gold is now attempting to rebound onto that support, which acts as a new floor.
Trading Charts
Chart – Henry Hub Natural Gas (NGZ21) Futures (December contract, daily chart)
Now, let’s zoom into the 4-hour chart to observe the recent price action all around the above mentioned levels of our trade plan:
In conclusion, my trading approach has led me to suggest some long trades around potential key supports – natural gas recently offered multiple opportunities to take advantage of dips onto those projected levels.