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Natural Gas (NG) Weekly Hammer Near Key 7 Level

Natural Gas (NG) Weekly Hammer Near Key 7 Level

Posted December 14, 2022
Darren Chu
Tradable Patterns

Natural Gas (NG) is consolidating after yesterday’s massive 6% plus gains, hesitating after bumping up against the psychologically key 7 whole figure level.  For now, NG’s lower December low versus the October and July lows (on the January contract) appears to have merely been a part of a broad descending wedge (on the weekly chart) that is arguably a Bull Flag consolidation.   Before bulls get excited, NG will need to break above the downtrend resistance (on the weekly chart) connecting the August and November highs.  The December/October/July lows formed between the 61.8% and 50% Fib retrace of the June 2020 – August 2022 bull market.  Volatility will surge as usual following Thursday’s widely anticipated weekly storage.  Closely monitor the escalation in the Ukraine-Russia conflict.  Congratulations to Premium Members who benefited from the opportunities highlighted Jan 19, 2022, Jan 27, 2021 and April 14, 2021.  The weekly and daily RSI, Stochastics and MACD are bottomish or consolidating recent gains.  I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Tuesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on GOLD, COCOA

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Source: Interactive Brokers TWS
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