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 [CL] Long around $69.21-69.63 with a stop below $67.12 (previous swing low) and the first target at $72.30 (again) – the second target will be defined later on, depending on where the current upwave finds resistance (NYMEX WTI Crude Oil Futures, see details of the trade plan here…)
- Natural Gas [NG] Long around $4.573-4.701 with a stop below $4.215 and a target at $5.266 (NYMEX Henry Hub Natural Gas Futures, Fig.1 & 2).
On the chart below, you can find the next potential support for natural gas. We could see a dip to around that level — it would be an excellent place to enter the trade on the long side from the risk-to-reward perspective.
Figure 1 – Henry Hub Natural Gas (NGV21) Futures (October contract, daily, logarithmic scale)
Figure 2 – Henry Hub Natural Gas (NGV21) Futures (October contract, weekly chart, logarithmic scale)
In brief, today we lifted our support level for Natural Gas in order to find a more realistic entry taking into consideration the recent market developments.
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 [CL] Long around $69.21-69.63 with a stop below $67.12 (previous swing low) and the first target at $72.30 (again) – the second target will be defined later on, depending on where the current upwave finds resistance (NYMEX WTI Crude Oil Futures, see details of the trade plan here…)
- Natural Gas [NG] Long around $4.573-4.701 with a stop below $4.215 and a target at $5.266 (NYMEX Henry Hub Natural Gas Futures, Fig.1 & 2).
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
