/NG (natural gas futures) has hit my second & preferred target of 2.782 with /NG trading there now following a slight momo-fueled overshoot with /NG reaching deeply oversold readings that have typically been followed by a bounce. As this may or may not be it for the correction that I was looking for, this is a good time to either book profits or tighten up stops if holding out for a backfill of the gap below or move down to the uptrend line. Previous & updated 60-minute charts below.
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- NG 60m Nov 5th
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- NG 60m 2 Nov 5th
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- NG 60m 3 Nov 5th.png
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- NG 60m Nov 6th.png
NG 60m Nov 7th
Regarding the DGAZ (3x inverse natural gas ETN) official trade idea, I’m going to add an additional price target to the trade to coincide with the top of that gap in /NG which is also the bottom of the comparable gap in DGAZ. That new target will become T1 at 95.70 (subject to further revision, depending on what /NG does between now & shortly after the stock market opens today) with the previous sole target of 106.05 now T2.
DGAZ 60m Nov 7th
I am also considering changing the long-standing policy that the price targets on official trades are only considered hit during the regular trading session. Quite often, my price targets on /NG and hence, UGAZ & DGAZ, are hit in the pre-market or after-hours trading session with the trade reversing from there. All brokers will allow a standing sell limit order (at your price target) to add a qualifier that allows that order to be filled outside of the regular trading session so with trades on securities that tend to have a lot of movement in the early pre-market hours, such as nat gas, it would be to one’s advantage to take advantage of those pre-market moves to profitable exit a trade once your price target is hit.
DGAZ has traded as high as 98.25 so far in the pre-market session today, which is about 11% above where the trade was added as an Active Trade just two days ago,