Natural Gas: Will continue downwards or reversal?
Prices are dropping since 22/02/2014, so the long-term trend is downtrend.
The daily trend is in a downtrend technically indicated by following:
• Dow pattern- lower tops and lower bottoms, (T1-B1-T2-B2).
• Price is currently trading below the valid downtrend line.
• Bearish Cross MA10 Under MA20
• RSI < 50
• MACD < 0
Prices are trading below the resistance level (R1) at 2.453 the 16/11/2015 high and below the SMA200.
Therefore, with a daily close below the 1.951, we will recommend SHORT POSITIONS for the no position holders on Natural Gas at 1.918. Take profit at 1.630 (S2) the 161.8% Fib. Stop loss should be a bit above the support level-S1, thus the stop loss is at the area of 2.116.
For SHORT-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
On the other hand, with a daily close ABOVE the R1, we will recommend LONG positions. Take profit1 at 2.705 (R2) and take profit2 at 3.096 (R3). Stop loss should be a bit below the resistance level- R1, thus the stop loss is at 2.378.
The daily trend is in a downtrend technically indicated by following:
• Dow pattern- lower tops and lower bottoms, (T1-B1-T2-B2).
• Price is currently trading below the valid downtrend line.
• Bearish Cross MA10 Under MA20
• RSI < 50
• MACD < 0
Prices are trading below the resistance level (R1) at 2.453 the 16/11/2015 high and below the SMA200.
Therefore, with a daily close below the 1.951, we will recommend SHORT POSITIONS for the no position holders on Natural Gas at 1.918. Take profit at 1.630 (S2) the 161.8% Fib. Stop loss should be a bit above the support level-S1, thus the stop loss is at the area of 2.116.
For SHORT-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
On the other hand, with a daily close ABOVE the R1, we will recommend LONG positions. Take profit1 at 2.705 (R2) and take profit2 at 3.096 (R3). Stop loss should be a bit below the resistance level- R1, thus the stop loss is at 2.378.