oil price trading

sebastien-bischeri

Position Update: Is Natural Gas Ready to Bounce Back?

September 23, 2021, 9:15 AM Sebastien Bischeri , Oil Trading Strategist

Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.

Trading position 

  • Crude Oil [CLX21] Next support around $69.00-69.36 – Lower support around $67.18-67.53 – No position justified from the risk/reward point of view;
  • Natural Gas [NGV21] Long around $4.573-4.701 with stop below $4.215 and target at $5.266 (Fig. 3 & 4).

Some clear pullbacks finally happened in natural gas — is this an opportunity to go long?

What we need to know:

Figure 1 – EU Gas Storage (Reuters)

Figure 2 – Russian Gas Exports to EU (Reuters)

Figure 3 – Henry Hub Natural Gas (NGV21) Futures (October contract, daily chart, logarithmic)

Figure 4 – Henry Hub Natural Gas (NGV21) Futures (October contract, weekly chart, logarithmic scale)

In summary, we can highlight that Henry Hub Natural Gas prices are finding support just above our forecasted zone, which is optimised for the best risk/reward ratio to go long. Be on the alert!

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 position 

  • Crude Oil [CLX21] Next support around $69.00-69.36 – Lower support around $67.18-67.53 – No position justified from the risk/reward point of view;
  • Natural Gas [NGV21] Long around $4.573-4.701 with stop below $4.215 and target at $5.266 (Fig. 3 & 4).

Thank you.

Sebastien Bischeri
Oil & Gas Trading Strategist

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