{"id":153018,"date":"2019-08-07T09:30:56","date_gmt":"2019-08-07T13:30:56","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=153018"},"modified":"2019-08-07T07:47:59","modified_gmt":"2019-08-07T11:47:59","slug":"natural-gas-and-crude-oil-diverging-setups-for-technical-traders","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/natural-gas-and-crude-oil-diverging-setups-for-technical-traders\/","title":{"rendered":"Natural Gas and Crude Oil \u2013 Diverging Setups For Technical Traders"},"content":{"rendered":"
August 7, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Over the past few weeks and months, we\u2019ve been alerting our followers to the incredible setups in Natural Gas and Crude Oil.\u00a0 If you\u2019ve been following our research, you already know on May 21st we called for Oil to break down from $62<\/strong><\/a> level with a target of $55 then $49 price levels.<\/p>\n

We\u2019ve been alerting that Natural Gas was setting up an incredible seasonal trade with a move that was likely to push lower into the $2.00 to $2.20 level \u2013 suggesting any move into this range would be a solid buying opportunity for the seasonal upside move.\u00a0 Well, here we are about 35 days later and look at what happened.<\/p>\n

Crude Oil Weekly Chart<\/h3>\n

The US\/China trade issues and global economic turmoil<\/a> is taking a toll on Crude Oil.\u00a0 Price rotated downward very sharply last week with an incredible -8% downside move in one day.\u00a0 Currently, price is resting just above the Moving Average and should soon breakdown below this level towards the $49 price level.\u00a0 At that point, price should stall, briefly, before attempting to find support below $50.<\/p>\n

Our Fibonacci price modeling system suggests true support is found near $45 and $40.\u00a0 Be prepared for a potential downside move of -20% to -25% from current levels.<\/p>\n

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Natural Gas Weekly Chart<\/h3>\n

Natural Gas has done exactly what we expected.\u00a0 On this Weekly chart, you can see our shaded BLUE support range area and our GREEN and RED arrows from months ago highlighting what we expected to happen in price.\u00a0 Yes, price is lower than we currently expected, but it has aligned with our expected price rotation almost perfectly.<\/p>

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<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

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At this point, the sub $2.20 level is a perfect opportunity for skilled technical traders to prepare for the seasonal trend that will push Natural Gas back above the $2.65 to $3.15 level.\u00a0 Allow us to go through our expectations with you so you understand how to plan for and trade this move.<\/p>\n

August is typically moderately bearish for NG.\u00a0 So expect to try to pick your entry for this trade in August.\u00a0 The ratio of bearish price activity in August is 1.2x the bullish price activity.<\/p>\n

September is STRONGLY BULLISH \u2013 with an upside ratio of 10x compared to historical downside price activity.\u00a0 September is where we should see a big upside price move.<\/p>\n

October is still STRONGLY BULLISH \u2013 with an upside ratio of 3x compared to historical downside price activity.<\/p>\n

November is moderately bullish with a 1.3x upside ratio compared to downside price activity.<\/p>\n

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VIDEO \u2013 TODAYS MARKET ANALYSIS
\nSPX, BONDS, GOLD, OIL, NAT GAS<\/h3>\n

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