Trading Natural Gas.

ashu1234

Well-Known Member
#51
Natural Gas yesterday and today also struggled at 4.200 and has reverted strongly from there. comex and mcx sl are out so buy call is closed. New downtrend is now confirmed and we can expect 200 level in the coming month.
For now, no trade, but sell on rise is favourable keeping comex sl 4.250 in consideration.
 

ashu1234

Well-Known Member
#55
Hi,
Today natural gas gave a "Bearish Crab:: pattern completion on comex. As mentioned earlier level to watch on upside was 4.455 on 18th march, though it missed to reach that level by few points, but I hope pattern is complete and we can see downside levels of 3.5 and below.
 
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ashu1234

Well-Known Member
#57
how does NG price varies based on inventory values?
Rule of Inventory like any other commodities (crude oil, bmetals) are same. More additions means there's more storage of these commodities to their respective warehouse, and therefore more addition tends to be bearish for the commodity and vice versa. But caution is required while trading immediately after the inventory data hits the market as lot of speculation is already at work and you may see price doing exactly opposite to this thumb rule. But to get a long term picture its exactly fine. You have to see the long term trend of past inventories, data of which is freely available, plus you have to add the seasonality factor to see why at some time inventory is negative or positive, for example natural gas inventory in past few weeks were negative and to the lowest due to below normal temperature in the U.S which is the major consumer. For coming month as summer starts there you may see inventory in positive figures like 100+ weekly additions, which mean less consumption and like wise.
 
#58
Rule of Inventory like any other commodities (crude oil, bmetals) are same. More additions means there's more storage of these commodities to their respective warehouse, and therefore more addition tends to be bearish for the commodity and vice versa. But caution is required while trading immediately after the inventory data hits the market as lot of speculation is already at work and you may see price doing exactly opposite to this thumb rule. But to get a long term picture its exactly fine. You have to see the long term trend of past inventories, data of which is freely available, plus you have to add the seasonality factor to see why at some time inventory is negative or positive, for example natural gas inventory in past few weeks were negative and to the lowest due to below normal temperature in the U.S which is the major consumer. For coming month as summer starts there you may see inventory in positive figures like 100+ weekly additions, which mean less consumption and like wise.
thanks 4 the reply
so in the coming weeks NG tends to be bearish, right?
 

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