Natural Gas Approaching Breakout: Eyes on Potential Up
We’ve got natural gas lying in a falling wedge pattern, which typically hints at a potential bullish reversal once it breaks out of the wedge. Natural gas recently took support around the 190 level, signaling that the buyers are stepping in to defend this price area.
Entry Strategy:
I’d wait for a confirmed breakout above 195.5 before entering a long position. This level acts as a trigger for the upward move, indicating that the price has cleared initial resistance.
Targets:
Once above 195.5, I'm eyeing three targets:
199 – the first resistance, where profit booking might happen.
203 – next significant level based on previous price action.
206 – the top target where I’d expect the price to meet stiffer resistance or reverse.
Stop-Loss:
To manage risk, I’d place my stop-loss at 192.5, just below the recent support level. This ensures that I’m protected in case the price reverses unexpectedly.
Risk management is key here — keeping the stop-loss tight while letting the trade breathe to hit those targets.
If this setup works, the breakout could result in a nice upward move within the range of 199-204 points, but it’s important to wait for that breakout confirmation to reduce the chances of a false move.
This analysis fits with a disciplined trader’s approach: define risk, set clear targets, and avoid premature entries until there's confirmation!
Entry Strategy:
I’d wait for a confirmed breakout above 195.5 before entering a long position. This level acts as a trigger for the upward move, indicating that the price has cleared initial resistance.
Targets:
Once above 195.5, I'm eyeing three targets:
199 – the first resistance, where profit booking might happen.
203 – next significant level based on previous price action.
206 – the top target where I’d expect the price to meet stiffer resistance or reverse.
Stop-Loss:
To manage risk, I’d place my stop-loss at 192.5, just below the recent support level. This ensures that I’m protected in case the price reverses unexpectedly.
Risk management is key here — keeping the stop-loss tight while letting the trade breathe to hit those targets.
If this setup works, the breakout could result in a nice upward move within the range of 199-204 points, but it’s important to wait for that breakout confirmation to reduce the chances of a false move.
This analysis fits with a disciplined trader’s approach: define risk, set clear targets, and avoid premature entries until there's confirmation!
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