After closing out the /NG (natural gas futures) long just shy of the downtrend line + 3.60ish resistance earlier, I’ve decided to short it here on the full tag of those intersecting resistance levels with a stop somewhat above (& close out by end-of-day, win or lose) & just wanted to share the trade idea for those interested. Updated 120-minute chart below.
My preference to close the trade out by the end of the day has to do with risk management, as natural gas futures will close trading later today & not open again until Sunday evening, adding extra overnight risk & increasing the chances for a potential sizable gap against my position. By shorting here at dual resistance (and my final price target on the recent long trade closed out today), I can keep a tight rein on any potential losses with a stop not too far above the downtrend line. However, depending on the price action for the remainder of the day, I might decide to take home a fractional position while closing out the bulk of the position before the close.