Natural Gas in Bullish Correction Against Overall Bearishness 12/16/20
On a macro basis:The decent trade below 3414 brought in 1046 tics of pressure.The failure back below 3298 brought in 945 tics of pressure.The maintained gap lower on 11/3 also warned of additional pressure, likely for days.We have seen 889 tics.
On a shorter-term basis:The failure below 2953 (+2 tics per/hour) brought in 130 tics of pressure before short covering off the low and rejecting off where it came in at 2998 with a 2996 high and rolling over 628 tics.The decent break below 2834 warned of a run for the 2660 (-) area.We have seen 466 tics of this so far, taking out 2660. The trade above 2524 has put the bear calls temporarily on hold, but a decent trade back below here will take them off hold.I would note we may be in the midst of a bullish correction that could see wide, choppy consolidation on it’s way to testing higher exhaustion levels (i.e. a swing down to retrace some of the move from 2368 before heading higher again is not unexpected over the next few days). Trade below 2596 will warn of pressure; but if we break below here and back above, look for short covering.
NOTE: this is just a small portion of the market calls I provide my clients twice daily in the Natural Gas and Energy/Gold complex. 'Decent penetrations' are specific amounts provided to clients daily as well. If you are interested, please feel free to reach out.
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