Natural Gas Trading: Yet Another Profitable Call!

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 [CLZ21] No position currently justified on a risk/reward point of view.
Natural Gas [NGX21] Long around $4.766-4.920 support (yellow rectangle) – with stop below $4.615 – which can now be lifted just below 4.825 (or at breakeven) – and targets at $5.311 (already hit!) and $5.662 – level slightly lifted from $5.604 (the level given yesterday) – See Fig. 1

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Trade Plan

Our initial trade plan was to go long on Natural Gas [NGX21] (November 2021 contract) around $4.766-4.920 support (yellow rectangle) – with stop below $4.615 (red dotted line) and targets at $5.311 and $5.604 (green dotted lines) – See Fig. 1.

The entry got triggered in the early hours of Tuesday; as you can see, the market made a rebound where the bulls took over. Our first target at $5.311 has just been hit — for those who exit partially, we suggest lifting the second target to the $5.663 level, while your stop should be lifted just below the new/recent swing low ($4.825) or at breakeven.

Trading Chart