Potential bullish reversal setup on Natural Gas

Binni published on OnlineForexMaster publicly that she is looking at a potential bullish reversal. Besides looking at Natural Gas contract NATGAS.fs on MT4, she discussed also investing in Natural Gas through Exchange Traded Fund UNG. This is one of her charts.

Natural Gas weekly chart | Source: OnlineForexMaster.com

Head and Shoulder Reversal Pattern – A possible major reversal in Natural Gas to head up | Source: OnlineForexMaster.com

More charts are available here on Google Plus.

This MT4 is my input combining boxes and HABBSTS.

 

Month-month price action bullish continuation setup

Weekly chart of Natural Gas

Weekly chart of Natural Gas

  1. I have covered a number of bearish setups on the Heikin Ashi Bollinger Band Stock Trading System (HABBSTS) previously. See here and here.
  2. This is a good chance to see what the system shows for a supposedly bullish setup. According to the test parameters for HABBSTS I established here, Natural Gas qualifies for a bullish continuation trade under Strategy B.
  3. Bollinger Bands show that Natural Gas has printed a higher low and qualifies for a long setup. This is true as long as Heikin Ashi Candles are bullish (black) and above the 3-week-displaced-2 exponential moving average (blue).
  4. Based on price action boxes, month – month Natural Gas is definitely on an uptrend since a bullish expansion in April this year. Year to year, it is still on a down trend although performance wise, NG is already in the green for 2016.

 

I would keep an eye on former 52-week high (2015-high) to see whether there is resistance but sometimes much as we like all trends to be perfectly aligned, it is not possible. The bet here is for month-month price action to continue up with a view that it is a possible real bullish reversal. If it is, the 52-week high will be broken, if it is not then the 52-week high will serve as resistance. This post here on XAUUSD explains how this works until June 2016, XAUUSD presented exactly such a technical picture.

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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