Here Is My Natural Gas Trade

Source: Getty Images

Natural Gas Futures---Natural gas futures in the June contract is currently trading higher by 4 points or 1.50% at 2.74 and if prices close at this level I will be recommending a bullish position while then placing the stop-loss under the December 28th low of 2.41 as the risk would be around $3,300 per large contract or $800 per mini contract plus slippage and commission.

If you take a look at the monthly chart it looks like natural gas prices bottomed as prices are now trading above their 20 and 100 day moving average as the trend has turned as the entire commodity sector has caught fire over the last week and if you have been following my previous blogs you understand that I've been doing a lot of counter-trend recommendations as I thought prices became too cheap.

The volatility certainly will start to increase as we enter the summer months as prices bottomed out around the 2.55 level as I still think we could trade up to the most recent high which was hit on February 18th at the 3.08 area in the coming weeks ahead so be a buyer. Make sure when you invest in the commodity markets that you risk 2% of your account balance on any given trade as the proper money management technique. 

TREND:HIGHER--MIXED 

CHART STRUCTURE: IMPROVING

VOLATILITY:LOW

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com 

 

TWITTER---@seeryfutures 

 

 Email: mseery@seeryfutures.com

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