Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading positions
- Crude Oil [CLX21] We project the $72.65-73.03 as new support onto which prices could rebound, so we would go long after a dip around that area with a stop just below $69.39 and with a target around $80 (see on Figure 3) – Updated trade position;
- Natural Gas [NGX21] Long around $5.480-5.568 with an initial stop below $4.766 (previous swing low) and targets at $6.62-6.63 (TP1) & $7.79 (TP2) – near 1st target!
Trading Analysis
Regarding our trade position on natural gas, Friday offered a new opportunity to enter on the same $5.480-5.568 support level (represented by a yellow rectangle on Figure 1 and Figure 2).
Risk management: our stop loss was lifted yesterday just below the $5.341 swing low. Now we suggest a new level to lift that stop – just below $5.660 according to the latest market developments – to protect profits and turn that stop-loss into a stop-win, above breakeven!
- To better visualize those levels, let’s zoom into the 4-hour chart before zooming out:
Figure 1 – Henry Hub Natural Gas (NGX21) Futures (November contract, 4H chart, logarithmic scale)
Figure 2 – Henry Hub Natural Gas (NGX21) Futures (November contract, daily chart, logarithmic scale)
Figure 3 – Henry Hub Natural Gas (NGX21) Futures (November contract, weekly chart, logarithmic scale)
In summary, to make sure we don’t lose profits, we prefer taking the opportunity of strong momentum to re-adjust our stop gradually. Thus, we let our trade progress smoothly in green territory so that we can subdue some emotions and just relax!
As always, we’ll keep you, our subscribers, well-informed.
Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading positions
- Crude Oil [CLX21] We project the $72.65-73.03 as new support onto which prices could rebound, so we would go long after a dip around that area with a stop just below $69.39 and with a target around $80 (see on Figure 3) – Updated trade position;
- Natural Gas [NGX21] Long around $5.480-5.568 with an initial stop below $4.766 (previous swing low) and targets at $6.62-6.63 (TP1) & $7.79 (TP2) – near 1st target!
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
