$NATGAS (natural gas) has plunged 46% off the divergent high & offers an objective, albeit aggressive, long entry here at trendline support with potential (unconfirmed) positive divergences on the indicators. Daily chart below.
$NATGAS daily Oct 20th
Starting to scale into natural gas here would be considered an aggressive trade as it is in free-fall with zero signs of a bottom at this time; i.e.- a “catch a falling knife” trade. While one can certainly make a decent case to start scaling into a long position here at the primary uptrend line support, a more conservative approach would be to wait for a breakout above this 60-minute bullish falling wedge pattern on /NG (natural gas futures) before taking an initial position –or– adding to a starter position taken here at the primary uptrend line.
NG 60m Oct 20th
The 60-minute chart above is the November contract which will start rolling to the December contract this week. (volume still higher in the Nov as of now) so I will follow up soon with the revised price targets for Dec contract as well as UNG (+1x nat gas ETN).