NATURAL GAS

Today's MARKET STATE for NATURAL GAS: **NEUTRAL DIGESTION**
 

-The MKT is in a sideways digestive position with a slight positive bias.

-On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as sloppy trading conditions are expected.  Any UP FADE trades should get confirmation first.

- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any positions, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for NG

Wrap Up
Today we had a big day in the NATURAL GAS futures market.  Our market commentary tells us to avoid a SELL DP BREAKOUT but rather FADE a positive reaction at the DIR.  With the R Level at the DIR, this strategy was in perfect alignment with our expectation for today.  As it played out, we got the breakdown at the DP around 5 A.M. and then a positive reaction up to our R Level at the DIR.  This was the highest probability trading opportunity and proved to be a profitable one.  By executing a SELL FADE from the DIR, our traders were able to capitalize on the corrective rally and realize profits either at the DP or the DT1.