Hi Traders!
Natural Gas has finally broken out from the descending channel as the year end is coming and heating season will soon begin.
Factors that helped the breakout:
Technically:
-channel support line
-yearly pivot support
-RSI divergence
Fundamentally:
-proximity of the production costs
-seasonal issues
-easing geopolitical issues (temporary)
Psychologically:
-extreme negative expectations
Entry: After this breakout run, look for a retest to the channel top or at least a short consolidation around the 2,40-2,50 confluence zone. Target price is opened, I would rather close the position around mid or end of Nov.
Regards,
Adam
Natural Gas has finally broken out from the descending channel as the year end is coming and heating season will soon begin.
Factors that helped the breakout:
Technically:
-channel support line
-yearly pivot support
-RSI divergence
Fundamentally:
-proximity of the production costs
-seasonal issues
-easing geopolitical issues (temporary)
Psychologically:
-extreme negative expectations
Entry: After this breakout run, look for a retest to the channel top or at least a short consolidation around the 2,40-2,50 confluence zone. Target price is opened, I would rather close the position around mid or end of Nov.
Regards,
Adam