Hello,
I think NATGASUSD is in for a bigger drop and report may be the catalyst .
Consider the scenario.
1. It consolidated in a range for a long time
2. Made a higher but was unable to hold gains
3. Second wave up after the last report failed to make a newer high
4. It closed on channel below the channel
5. Almost half the volume on the upswings and new highs
That's how I look at things. Trade accordingly. I'd wait until it hits the Declining channel then short. 3.315 would be my stop if I short at around touch of declining channel.
Will be a good risk/reward because I'd short it at touch of channel and stop at 3.315.
However, if it breaks the channel with conviction goes to set another high, this idea has failed it's validity.
I think NATGASUSD is in for a bigger drop and report may be the catalyst .
Consider the scenario.
1. It consolidated in a range for a long time
2. Made a higher but was unable to hold gains
3. Second wave up after the last report failed to make a newer high
4. It closed on channel below the channel
5. Almost half the volume on the upswings and new highs
That's how I look at things. Trade accordingly. I'd wait until it hits the Declining channel then short. 3.315 would be my stop if I short at around touch of declining channel.
Will be a good risk/reward because I'd short it at touch of channel and stop at 3.315.
However, if it breaks the channel with conviction goes to set another high, this idea has failed it's validity.