NATURAL GAS

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

- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade.  UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.


Today's PRICE MAP Performance for NG

Wrap Up

A breakdown from the KEY INFLECTION pivot at the DP R level today in the NATURAL GAS futures market signaled traders to ride the negative momentum with a SELL DP BREAKOUT strategy targeting the DT2.  With confirmation from the MOVING AVERAGE TACTIC (optimal hedge tactic), traders were able to trade WITH the negative momentum and get short from the DP.  After breaching this significant level of support, the market sold off sharply before finally stabilizing at our profit objective, the DT2.  Although the expectation coming into the session was for a NEUTRAL session trading between the Critical Range, the negative structure throughout the morning session was a "red flag" alerting traders to the possibility of the downward directional move.