Natural Gas and Crude Oil investing strategies Feb-05: Generatebucks

Natural Gas futures have been under pressure for almost a month now. Crude Oil prices have been trading in range since past few weeks and seems like the trend will continue.

Natural Gas and Crude Oil futures - Generatebucks
Natural Gas and Crude Oil futures - Generatebucks
Last week most investors who follow Generatebucks made huge profits because we met all targets. Monday morning targets were also met and traders who followed day trading tips made great profits.

Looking at NG futures and Crude Oil today, it is clear that both counters have been following a trend and traders are respecting that trend. NG futures have become less speculative and have been trading in red as mentioned last week.

NG futures

NG futures closed at 192.40 yesterday on MCX breaking it major support at 198. The market was seen breaking support based on the weather forecast. Warm weather reduced heating days thus decline in consumption of NG. 

NG futures in international markets break down through $2.7 gaping down. I should say we are heavily oversold in this market and I am expecting a rally to fill the gap. The $2.7 has now become a resistance and $2.5 is a major support zone.

We are at a stage where any kind of fresh trade will not make sense but we can expect the market to trade sideways to lower till Thursday.

I believe buyers will be able to dominate this market at $2.5 level which would 185-188 at MCX. If you are planning to go long in this counter, enter this market at 185 for a target of 195 (short-term) with stop loss of 182.

A short really is expected and we can also see futures trading at 199.

I would always advise an investor to stick to sell on rise rather than going long since momentum has turned negative. There will be short rallies. Trading against the trend is always risky.

Crude Oil Investing Strategies

Crude Oil prices have rallied in January after US-imposed sanctions on Venezuela cut supply to a market already hit by falling OPEC production. The combination of better-than-expected economic data and reduced supply sent crude oil to a peak

Crude Oil market break the resistance level earlier this week and now 3800 has been acting a support underneath. I expect Crude Oil to be bullish for upcoming sessions and would advise investors to go in Crude Oil.

I would suggest to go long in Crude for target of 4100-4150 in upcoming sessions. We can see a correction after EIA report is released on Wednesday which can only impact Oil for few trading sessions.

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  1. That is interesting to know, thanks for the share


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