I'm looking to short Natty Gas soon and need to see just a few more things before I'm satisfied.
We formed a high-test on the monthly with May's close and that's awesome confirmation of the large weekly head and shoulder pattern. I'm now watching for a head and shoulder pattern on the daily and a pullback to the fibs for the right shoulder. That is where I'll look to enter.
The dirty deets:
Watching for a bounce off of the 200ema between now and friday to send price back up to the fibs and right shoulder area.
I'm looking to enter in that area (drew ideal position setup) with around a 5:1 reward:risk ratio to Target #1.
Target #1 sits at the key weekly November '16 low with Target #2 way down at the major March 16' low. It won't take too much effort to get to the first target, but the second target is going to take a bit more oomph. Just need to wait and see what price action develops once we reach that area to determine the probability of hitting that second target.
For more in depth analysis and my price action based theory behind the trade checkout: https://patstrades.com/2017/05/30/natural-gas-about-to-fall/
We formed a high-test on the monthly with May's close and that's awesome confirmation of the large weekly head and shoulder pattern. I'm now watching for a head and shoulder pattern on the daily and a pullback to the fibs for the right shoulder. That is where I'll look to enter.
The dirty deets:
Watching for a bounce off of the 200ema between now and friday to send price back up to the fibs and right shoulder area.
I'm looking to enter in that area (drew ideal position setup) with around a 5:1 reward:risk ratio to Target #1.
Target #1 sits at the key weekly November '16 low with Target #2 way down at the major March 16' low. It won't take too much effort to get to the first target, but the second target is going to take a bit more oomph. Just need to wait and see what price action develops once we reach that area to determine the probability of hitting that second target.
For more in depth analysis and my price action based theory behind the trade checkout: https://patstrades.com/2017/05/30/natural-gas-about-to-fall/
