NATURAL GAS ($8.56) - Short/Sell Idea
NATURAL GAS ($8.56) - Potential Short/Sell Idea
Today it hit a 14-year high of $8.65. I added this as a long idea 13 months ago at $2.66 representing a 225% advance. At the beginning of the year I discussed the large falling wedge (bullish setup) and the consolidation breakout in March.
Current View:
1. The price (now $8.56) appears extended with the first metric being it's extension vs the 200-day moving average ($4.91).
2. Negative divergence as per the 14-day RSI
3. IF yesterday's high is not held ($8.47), this could see a 'dark cloud cover' candle formation being printed. I might be a day or two early on point #3 as the price can remain elevated.
These three factors suggest that the buy/long side (technical view) is not as appealing as in previous months and may even set up a *short term* short/sell once point #3 is triggered.
Provisional Levels:
Sell Stop: $8.45
Stop-loss: $8.72
Target: $7.25
Today it hit a 14-year high of $8.65. I added this as a long idea 13 months ago at $2.66 representing a 225% advance. At the beginning of the year I discussed the large falling wedge (bullish setup) and the consolidation breakout in March.
Current View:
1. The price (now $8.56) appears extended with the first metric being it's extension vs the 200-day moving average ($4.91).
2. Negative divergence as per the 14-day RSI
3. IF yesterday's high is not held ($8.47), this could see a 'dark cloud cover' candle formation being printed. I might be a day or two early on point #3 as the price can remain elevated.
These three factors suggest that the buy/long side (technical view) is not as appealing as in previous months and may even set up a *short term* short/sell once point #3 is triggered.
Provisional Levels:
Sell Stop: $8.45
Stop-loss: $8.72
Target: $7.25
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