Final Target Hit on NYMEX Natural Gas!

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

Trading positions

Natural Gas [NGH22] Long around $ 3.846-3.886 support (yellow band) with targets at $4.442 (already hit!) & 4.818 (already hit as well!) and initial stop just below $ 3.629 (trailed up following our risk management guidelines – See charts)

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The Natural Gas flight just landed after hitting its second and last target yesterday. The perfect trade does not exist, but this one has been developing pretty well following our flying map.

In today’s edition, I will provide a trade review for Natural Gas futures (NGH22) following my last projections published on Friday Feb-11, for which the stop was also updated last Wednesday and trailed again last Thursday.

Trade Plan

Just to remember, our initial plan was relying on a gas market having to cope with stronger demand to fuel and increasing industrial activity after being surprised by the warming mid-February weather forecast. Hence, the projected rebounding floor (or support level) provided, which was ideal for the Henry Hub given the unyielding global demand for US Liquefied Natural Gas (LNG), providing a catapulting upward momentum. Then, it took a few days for the first suggested objective at $4.442 to be passed, and a few extra days for the second target located at the $4.818 level to be hit (as it was yesterday). Meanwhile, as I explained in more detail in my last risk-management-related article to secure profits, our subscribers were kindly and promptly invited to place their initial stop just below the $3.629 level (below one-month previous swing low), before receiving a couple of trading alerts suggesting they manually trail it up around the $3.886 level (around breakeven), then one more time up towards 4.180 (which corresponds to the 50% distance between initial entry and target 1), and finally to be lifted up to 4.368 optimally.

Consequently, after a reconnaissance mission got close enough to target number 2, the Nat-Gas flight started running out of kerosene after passing through the first target like a fighter jet would break the sound barrier. Therefore, after getting refueled at a lower altitude (just above our highest elevation trailing stop) by a refuelling aircraft, the jet was finally ready to point and lock its last target before striking it.

Here is a picture-by-picture record of that trade.

First step: flight preparation on carrier ship

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)