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

Sept Nat Gas Update/Lee *PIC*

Here is the Sept Nat Gas chart. It does track the continuation chart over the last year fairly well. But NG has been in a sideways basebuilding channel for almost a year now with a 4.00 lower channel support and 4.90 upper channel resistance. Wayne has also posted about waiting til price breaks out of this consolidation before getting long. Base building periods can be used for accumulation and with prices so low 'historically' one could make that argument if building a large position averaging in or even trading the channel. But until price breaks out of the channel it's just a choppy mess to deal with. Even a break above 4.90 has resistance at 5.20 to deal with. The best and most likely scenario would be for price to clear AND hold above 4.90 and trade in a tight range up to 5.20 for awhile. That could be the time to get long if accumulation a position as at least price would have shown it could clear and hold above the channel top and consolidate. Meanwhile chop chop. I said the other day to watch for a selloff that forms another bottoming pattern if you want to trade a bounce. That hasn't developed yet.

Messages In This Thread

Sept Nat Gas Update/Lee *PIC*