Natural Gas Locked In Tight Range
- Natural Gas has been trading in a relatively tight range since July of this year.
Natural Gas has been trading in a relatively tight range since July of this year. After experiencing a massive rally, followed by massive sell off.... the market is trying to find fair value ahead of the fall season where many states do use natural gas for heating as well.
Natural Gas futures CAN be a very explosive market, both ways. The contract is sizeable ( $100 per point either way, 3.970 to 3.980 = $100 per contract) and I have seen some very powerful, fast moves over the years.
NGE Natural Gas (Globex) Equalized Active Daily Continuation Heikin Ashi
At this point I must admit I do NOT have a directional bias for this market and will look to trade the ranges by trying to sell the upper bands as seen on the chart below and buy the lower bands as seen in the daily natural gas chart below. Until the market can prove to me that it can break out of the channel that will be my game plan. If you are looking to use similar strategy make sure you place stops above the upper band and below the lower band as confirmed breakouts can be fast.
Last but not least if you are an experienced option trader, I do like selling puts on moves down but highly recommend advising with a broker to understand the unlimited risk associated with selling premium. You can read more about options strategies here.
Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About Ilan Levy-Mayer Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company. Take a step in the right direction and contact me today, Toll-Free: 800-454-9572 or direct: +310-859-9572. You may also directly e-mail me, Send mail.
Natural Gas has been trading in a relatively tight range since July of this year. After experiencing a massive rally, followed by massive sell off.... the market is trying to find fair value ahead of the fall season where many states do use natural gas for heating as well.
Natural Gas futures CAN be a very explosive market, both ways. The contract is sizeable ( $100 per point either way, 3.970 to 3.980 = $100 per contract) and I have seen some very powerful, fast moves over the years.
NGE Natural Gas (Globex) Equalized Active Daily Continuation Heikin Ashi
At this point I must admit I do NOT have a directional bias for this market and will look to trade the ranges by trying to sell the upper bands as seen on the chart below and buy the lower bands as seen in the daily natural gas chart below. Until the market can prove to me that it can break out of the channel that will be my game plan. If you are looking to use similar strategy make sure you place stops above the upper band and below the lower band as confirmed breakouts can be fast.
Last but not least if you are an experienced option trader, I do like selling puts on moves down but highly recommend advising with a broker to understand the unlimited risk associated with selling premium. You can read more about options strategies here.
Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About Ilan Levy-Mayer Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company. Take a step in the right direction and contact me today, Toll-Free: 800-454-9572 or direct: +310-859-9572. You may also directly e-mail me, Send mail.