Tuesday, May 24, 2011

Natural Gas (NG) End Of Day 5/24

As an update to the Natural Gas post originally suggesting a long position after a nice engulfing pattern off of support, I bring you the two charts to our left. I suggested waiting for a move down to get in and there was at least one opportunity today (@4.276), the 38.2% retracement of the move from its lows to its highs today. On a daily chart it looks like it has cracked and closed right about the first retrace of the sell off in early may, and the hourly shows it testing the retracement downwards intra-day, only to sharply reject it and head back up. I entered today on that quick down move and believe this position is still healthy and look to take some off at the 61.8% (@4.482) and only stop out if we fall and close below 4.2.

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