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TFC Commodity Trading Forum

Re: DXZ12 /Nat Gas/Lee *PIC*
In Response To: Re: DXZ12 /Nat Gas/Trades/All ()

Here is a chart of Jan Nat Gas which tends to be the most watched contract in the fall onwards. And there is plenty of time to trade the options on it unlike the Nov contract. Nov NG still has the highest open interest but that wont last long and Dec is not traded like Jan is. Same chart with a recent breakout and with the RSI 21 bumping up against the very overbought zone of 70 and the shorter term oscillator being CCI 20 also bumping up against the +200 line. Doesn't mean price can't go higher but what you should see here is a tight consolidation pattern "above" the breakout point for awhile "IF" this is a valid breakout that is going to hold. You would not want to see price continue up from here and then collapse. "IF" price doesn't hold above the breakout pt a likely support point to load up at would be at the early Sept high and breakout pt of 3.55 on the Jan contract. That would actually be a very healthy pattern to see at this point. Price is getting a little too stretched out and if the trend is changing from base building to up a pullback would be better to see here. But bottom line is watch to see price hold above the breakout pt of 3.78 and consolidate until it has convinced traders it is now solid support. Failing that watch for a pullback to 3.55. That is what I see with this chart fwiw............