- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.
Today's PRICE MAP Performance for NG
Wrap Up
JS Traders were given a nice opportunity to sell the corrective rally in the NATURAL GAS futures market today. In a BEAR TREND market state with the R Level at the minor level above the UP, the probability was to the downside with any corrective rally into the UP-R resistance band presenting a valid selling opportunity. Around 9:15 am CT the market rally stalled at our expected level of resistance, allowing traders to execute a SELL UP FADE strategy. The market respected this key structural pivot and spent the rest of the session probing lower, eventually giving traders the opportunity to net profits on the short position at the DIR.
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