June Natural Gas Futures
I spent some hours breaking down the structural evidence in the Natural Gas Market. Commencing from the lows of around 2.53 seen in the early part of this year I would have no choice but to categorize the pattern as non-impulsive. Currently I have labeled the sequence as a complex W-X-Y correction which to me appears to have run its course. This week the market made a new 3 month high at 2.865. This level fell just shy of the overhead rising channel projection and produced multi time-frame momentum divergence. Furthermore there are several proportional measurements that converge here. Implementing a short futures position with a stop place above the recent extreme I contend one has the chance to establish an extremely favorable risk to reward scenario. There is support just below here around 2.838. This is a tough spot and should put up a fight. A daily close below would look encouraging. My major objective comes in underneath at +/-2.75. The ratio computes to roughly 6 to 1. This breakdown could either be laying out another X wave low or perhaps display impulsive qualities which would lead me to believe that the year’s low will come under attack.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest.
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