Buying Opportunities in Natural Gas. #1 Buy Limit Filled @ $2.6150. Mon, Mar 7 05:23am.
There are two charts above. The upper chart refers to the weekly time frame of Natural Gas. The other is the hourly time frame.
From the perspective of the weekly time frame, Natural Gas has fallen some 80% from its peak of $9.96 in August of 2022 to as low as $2.128 last Wednesday, Feb 22. Incidentally, this low briefly took out an obvious low. That low being the December 2020 low of $2.266 and prices quickly reversed direction.
This is what typically called a rinse whereby smart money attempts to fool market participants into selling/buying on the breakout of an important low or high and quickly reverse the trend thereby trapping those who enter a trade on the break of obvious key levels.
This is key as this market has fallen so deep despite a very tight energy market in Europe which should theoretically cause prices to surge. But the reverse is happening to natural gas prices since August last year.
Technically, a rebound is way overdue. As we have it, the rebound off last week's low of $2.128 (after the false break) has been sharp; suggesting an important low may be in place. If so, this market has a long way to go as it rebounds.
#1 Buy Limit @ 2.6150 - Order Filled Mon, Mar 7 05:23am.
#2 Buy Limit @ $2.4750.
#3 Buy Limit @ $2.4100.
Stop @ $2.1000.