Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: May Nat Gas/ECA/Trades *PIC*

Thanks for the chart and comments Trades. I sold half my position for good profit last week when price tested but failed to break through the $35 resistance level shown on your chart. Sold half the remainder late in today's session after price rebounded to test the breakdown from yesterday's close.

I'm not disappointed with today's action at all as I've been expecting, and waiting for, a further correction to test the breakout in the $32-32.65 area. Today's 'hanging man' candlestick suggests that is now a stronger possibility, so I'll look to add shares back in that range. Also note the hanging man candlestick that appeared 7 trading days ago on Monday, March 21st, effectively signalling the interim top.

The chart appears to have carved out a nice cup n' handle formation, some might even suggest two (one cup within another). To prove the pattern out we need to see the new handle form over a period of days to weeks, while testing horizontal support and the 20/50dma's on diminished volume. Ideally, prices should not close below $32. The healthy trend on OBV also bolsters the possibility for this outcome, as RSI and Wm%R continue to back off from their overbought extremes. There is an emerging trendline (not drawn on my chart) connecting the December and March lows that currently runs through the $31 mark...a break of that would neutralize my bullish outlook for this stock...that's where my stops will be.

Messages In This Thread

Re: May Nat Gas/ECA/Trades *PIC*