Final Target Hit on NYMEX Natural Gas!

In today’s edition, I will provide a trade review for Natural Gas futures (NGH22) following my last projections published on Friday Feb-11, for which the stop was also updated last Wednesday and trailed again last Thursday.

Trade Plan

Just to remember, our initial plan was relying on a gas market having to cope with stronger demand to fuel and increasing industrial activity after being surprised by the warming mid-February weather forecast. Hence, the projected rebounding floor (or support level) provided, which was ideal for the Henry Hub given the unyielding global demand for US Liquefied Natural Gas (LNG), providing a catapulting upward momentum.

Then, it took a few days for the first suggested objective at $4.442 to be passed, and a few extra days for the second target located at the $4.818 level to be hit (as it was yesterday). Meanwhile, as I explained in more detail in my last risk-management-related article to secure profits, our subscribers were kindly and promptly invited to place their initial stop just below the $3.629 level (below one-month previous swing low), before receiving a couple of trading alerts suggesting they manually trail it up around the $3.886 level (around breakeven), then one more time up towards 4.180 (which corresponds to the 50% distance between initial entry and target 1), and finally to be lifted up to 4.368 optimally.

Consequently, after a reconnaissance mission got close enough to target number 2, the Nat-Gas flight started running out of kerosene after passing through the first target like a fighter jet would break the sound barrier. Therefore, after getting refueled at a lower altitude (just above our highest elevation trailing stop) by a refuelling aircraft, the jet was finally ready to point and lock its last target before striking it.

Here is a picture-by-picture record of that trade.

First step: flight preparation on carrier ship

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)

Second step: prices catapulted and stop lifted at breakeven once the mid-point target was reached

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)

Third step: target one hit and stop dragged up

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)

Zoom to target one (4H chart):

Henry Hub Natural Gas (NGH22) Futures (March contract, 4H chart)

Fourth step: mission reconnaissance to target two and refueling aircraft en route to refill the jet tank (stop trailing again)

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)

Zoom to lock final target (4H chart):

Henry Hub Natural Gas (NGH22) Futures (March contract, 4H chart)

Fifth step: final strike to target two

Henry Hub Natural Gas (NGH22) Futures (March contract, daily chart)

Now, let’s zoom one more time into the 4H chart to observe the recent price action all around the abovementioned steps of our flying map:

Henry Hub Natural Gas (NGH22) Futures (March contract, 4H chart)

As you may observe, target one is now serving as a new landing space (support) for a new ranging market cycle.

That’s all, folks, for today. I hope that you enjoyed the flight with our company!

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Thank you.

Sebastien Bischeri
Oil & Gas Trading Strategist

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The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data’s accuracy and thoroughness.

The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits’ employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.