Natural Gas Trading: Yet Another Profitable Call
Sunshine Profits | Oct 22, 2021 12:51PM ET
We entered a natural gas trade on Tuesday, which turned out to be profitable… just like the previous ones! Let’s have a look at how we can continue.
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 break even.
Figure 1 – Henry Hub Natural Gas (NGX21) Futures (November contract, daily chart, logarithmic scale)
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