- Technically the MKT is "on the fence" with the potential to go in either direction or nowhere. Pick your points and have no expectations, as the likelihood of this MKT trading sideways is high.
- On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The pivotal nature of the session does have the potential to be the starting point for a new move. However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.
- On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The MKT is "on the fence" and does have the potential to be the beginning of a new trend move. The probability of a new trend move is low. However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.
Today's PRICE MAP Performance for NG
Wrap Up
- Today in the NATURAL GAS futures market the MC Value of +2 produced a NEUTRAL DIGESTION Market State. Given this information, traders should look for a sideways, digestive session, keying off of the Critical Range. The R Level below the Critical Range means that any corrective sell off is an opportunity to get long the market ABOVE the R LEVEL. In a NEUTRAL, NON-TREND market state, our optimal market tactic is to use our MOMENTUM OSCILLATORS. Notice the BULLISH DIVERGENCE that occurs in the RSI just before 7 am CT. This technical tactic is our "tell" to accept a BUY DP REVERSAL signal. By identifying the MARKET STATE, traders were able to capitalize on the tactical signal occuring at our key level of SUPPORT (DP). The market built positive structure throughout the day, allowing traders to hold onto their long position and net some serious gains.
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