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Potential Breakout for Natural Gas by TrendFollower

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My 'gut' and 'instincts' are signalling/indicating to me that there is a potential 'long' trade here for Natural Gas. This is for the 'highest risk' traders only but the risk/reward potential is great. 

Have a look at the 'Weekly' and 'Monthly' charts and you will appreciate why I think this. Also one could argue that when everyone is bearish on an asset then it can on occasions present exceptional buying opportunities and I think with the potential cold weather we are seeing we could see a sharp turn for Natural Gas when one least expects.

Also don't forget that the shorter will want to take their profits at some point and when they do we may see a monumental short covering rally and if you include the potential of new longs joining the party then a large move upwards could materialise regardless of the fundamentals and demand/supply as Commodities have a large speculative nature!

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@J_Bernard and @dmedin,

There you go. My post above on 18th February was anticipating such a move. The Coronavirus Crash has come and gone and Natural Gas is now looking like it wants to go for 2000 level. 

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I am seeing strong support for Natural Gas at these price levels when looking at the 'Monthly' and 'Weekly' charts. Of course support areas can be broken and this is a very unique time so I am not ruling out any further downside action but I feel like the bulk of the bearishness has been priced in. 

Of course right now then is absolutely no reason to go 'long' but I am waiting for the dust to settle on Coronavirus as I think Natural Gas and Oil are going to see some major 'Short Covering' and this will lead to an amplified rally in my opinion. It is a case of patiently waiting and doing nothing. It is a matter of having the discipline to wait for the 'Trading Set Up' to arrive and then execute. 

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